DCG and Genesis Creditors Achieve an Arrangement for Up to 90% Recovery

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Last Updated on August 29, 2023 by Bitfinsider

According to a court statement on Tuesday, Digital Currency Group (DCG), the parent company of bankrupt trading business Genesis Global Holdco, has reached an in-principle agreement with Genesis creditors to resolve their claims.

Genesis, which filed for Chapter 11 bankruptcy protection in January, stated in the petition that it presently owes $630 million in unsecured loans due in May 2023 and a $1.1 billion unsecured promissory note due in 2032.

DCG intends to take on new debt facilities and enter into a repayment agreement as part of an in-principle agreement. A $328.8 million first-lien facility with a 2-year maturity and a $830 million second-lien facility with a 7-year maturity will be among them.

According to the statement, DCG also wants to pay $275 million in four installment payments.

The idea, if implemented, could result in projected recoveries of 70% to 90% in US currency equivalent for unsecured creditors and 65% to 90% in-kind recoveries depending on the denomination of the digital asset, according to the document.

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