Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, November 22. In today's newsletter, our reporters break down what to expect when FTX makes its debut appearance in Delaware bankruptcy court. Crypto lender Genesis is canvassing for a rescue, and our colleagues at CFO Journal piece together Twitter's financial prospects since Elon Musk's took it private.

What to expect as FTX debuts biggest crypto chapter 11 in court. FTX is expected to make its debut appearance Tuesday in Delaware bankruptcy court, where its new management is expected to recount events leading up to the cryptocurrency platform’s sudden collapse and explain the steps it has since taken to secure customer funds and other assets.

FTX’s lawyers are advancing an unprecedented chapter 11 case marked already by allegations of major failures against its former leadership and a budding jurisdictional dispute with the government of the Bahamas, where the firm’s inner circle ran its doomed crypto operation.

Contagion is still spreading from the failure of FTX, and the impact on its one million estimated customers won’t be known for some time. Here’s a look at key officials who will be present at the court hearing and some of the issues likely to be discussed.

• Crypto lender Genesis asks Binance and Apollo for cash. Cryptocurrency firm Genesis Global Capital has faced a rush of withdrawals from its lending arm and sought an emergency loan of $1 billion before it told clients it was suspending redemptions and loan originations. A company spokesman said it has "no plans to file bankruptcy imminently."

Twitter faces high debt, falling revenue. Elon Musk says his $44 billion Twitter takeover might result in a bankruptcy filing. But there could be other options. Mr. Musk, the world’s richest person, could also raise new funds, or buy back debt from lenders, giving Twitter a buffer to turn around its business. Here, CFO Journal looks at what we do and don't know about Twitter’s financial situation and prospects.

• Twitter layoffs hit some who signed on to Musk's vision. The company laid off some employees in sales after they had signed on to the billionaire’s vision. The latest cuts underscore the uncertainty and rapid changes as he races to reshape Twitter. They also come as other technology companies are paring back amid high inflation, rising interest rates and currency headwinds.

Student-loan holders have new path for wiping out debt through bankruptcy. The Biden administration’s decision to make it easier to discharge student loans in bankruptcy could offer a new safety valve for debtors who have exhausted other options for getting out from under heavy debt loads. The bankruptcy changes set specific requirements for borrowers to prove that they are experiencing economic distress.

Government lawyers will assess a borrower’s ability to repay their loans based on a set formula—whether expenses equal or exceed a debtor’s income—and other considerations, such as retirement age, disability, educational attainment and job history.

The scope of its impact will depend on how the new rules are applied by judges, lawyers and student-loan borrowers across the country in individual bankruptcy cases. Over time, the handling of these cases could differ depending on which party controls the White House.
 

• Readers say... "This seems like a very reasonable compromise. Allow those who are struggling to get out of their liabilities and be impacted on their credit score. This will help those who need it the most without giving a massive regressive handout to 30 million college graduates."
  
  – MacLeod Morehouse, @MacleodMorehouse, commenting on Student-Loan Holders See New Path for Wiping Out Debt Through Bankruptcy

Beyond Meat's very real problems. In 2019, Beyond Meat launched a successful initial public offering, snagged entertainers Snoop Dogg and Leonardo DiCaprio as boosters and signed deals with major restaurants and supermarket chains. Since then, the company has been losing money and amassing debt. Grocery sales of plant-based meat substitutes are declining, and rival imitation-meat makers are capturing market share.

• Earlier: GloriFi CEO Toby Neugebauer won over A-list investors to build a bank for people who consider Wall Street too liberal. Within months it was nearly bankrupt.

Riverstone-backed Talen Energy reaches global creditor deal. Talen Energy Supply LLC told a Texas bankruptcy judge Monday that it has reached a settlement with its creditors, lenders and its private-equity sponsor Riverstone Holdings LLC to resolve all outstanding disputes on its restructuring plan.

Talen’s attorney Clifford Carlson notified the U.S. Bankruptcy Court in Houston that the global settlement was reached last week through mediation facilitated by another Houston judge.

A settlement incorporated into the proposed restructuring plan would enhance recoveries of general unsecured creditors by allocating them a $26 million cash pool, Mr. Carlson said during his presentation. He also said with this settlement in place, parent holding company Talen Energy Corp., which hasn’t sought bankruptcy protection, is intending to file for chapter 11 in the near future to join the restructuring plan. — Akiko Matsuda

• Earlier: Talen Energy to Hand Power-Plant Business to Bondholders

Rate hikes' impact on economy can be hard to gauge. As the Federal Reserve raises interest rates to cool the economy and slow inflation, it is contending with the imprecise and inconsistent effect of monetary policy on the economy.

Since it can take years before the full effects of tightening become apparent, the Fed tends to move incrementally, adjusting policy gradually while scrutinizing economic data for signs of its effects. But in the current state of the economy, the Fed has decided it doesn’t have the luxury to act slowly.

Share your tips, suggestions and feedback with the WSJ Pro Bankruptcy team: Soma Biswas; Alexander Gladstone; Jodi Xu Klein; Akiko Matsuda; Jonathan Randles; Alexander Saeedy; Andrew Scurria; Becky Yerak. 

Follow us on Twitter: @SomaBisWSJ; @gladstonea; @jodixu; @AskAkiko; @Sparkyrandles; @ajsaeedy; @AndrewScurria; @beckyyerak.