Alameda Research and Genesis Global Resolve USD 3.88 Billion Claims Dispute
Date: 2023-08-18 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Alameda Research has agreed to claim $175 million from Genesis Global's assets, according to an agreement filed in court on Aug. 16. This resolves a dispute between two bankrupt businesses over claims against each other.
Significant reduction from original $3.88 billion
The agreement represents a significant reduction in Alameda Research's original lawsuit against Genesis. Alameda, which filed for bankruptcy in November 2022 along with FTX, initially filed lawsuits totaling $3.88 billion.
It claimed that this included repaying Alameda's loan and withdrawing Genesis funds from FTX.
However, Genesis, which filed for bankruptcy in January 2023 when it could no longer meet its debt obligations, is also FTX's largest unsecured creditor. The lender claims to be owed $226 million.
Under the agreement, which lawyers originally disclosed in July, FTX will receive $175 million and is not obligated to Genesis.
Meanwhile, the deal remains subject to bankruptcy court approval in Delaware and the Southern District of New York. The two courts are hearing the FTX and Genesis bankruptcy cases, with hearings set for September 11 and 6, respectively.
The parties say this is the best way forward
The parties appear to be happy with the agreement, judging by what Genesis' lawyers disclosed in their filing.
"The Genesis debtors have determined, in consultation with their advisors, that the settlement is fair and equitable, reasonable, and in the best interests of the Genesis debtors' property," the statement said.
FTX CEO John Ray III also agreed with the deal, noting that it would save the company time, money and other resources needed in the event of a lawsuit with Genesis.
This agreement represents only one of the many requirements that both companies face during bankruptcy proceedings.
