According to a court filing Thursday, US Trustee, a unit of the Justice Department that monitors bankruptcies, named nine creditors to the committee, these include the Genesis Unit. Judges typically rely on such groups to help shape payout plans in big, multibillion dollar bankruptcy cases.
The panels hire their own lawyers and financial advisers, conduct their own independent investigations and are involved in most negotiations in big, corporate bankruptcy cases. Their expenses are paid by the bankrupt company.
Genesis previously said it had $175 million in exposure to FTX, which forced its parent Digital Currency Group to provide Genesis with a $140 million capital infusion in November. Genesis is currently attempting to raise at least $1 billion in fresh funds to avoid filing for bankruptcy.
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