Crypto loan genesis achieves fundamental agreement with DCG

Crypto loan genesis achieves fundamental agreement with DCG

On February 6th, Genesis announced that there was a global solution that will maximize the “value” for all customers and interest groups of Genesis.

The basic agreement exists with the parent company DCG and creditor groups, which hold or represent more than $ 2 billion in claims.

At the beginning of January, Genesis released almost a third of his workforce when it thought about an bankruptcy application. On January 20, the crypto loan continued with the submission according to Chapter 11.

according to the announcement:

"According to the conditions of the agreement, DCG would exchange its existing bond of $ 1.1 billion, which is due in 2032, for changeable preferred shares, which are output by DCG as part of the Chapter 11 Plan of Genesis."

Genesis is progressing

The DCG would also refinance its existing loans with a term by 2023. These would go into two tranches through a new "Junior Secured Term Loan", which are paid to the creditors with a total value of around $ 500 million.

DCG also intends to sell Genesis's crypto trade business in addition to its lending business, which is restructured by bankruptcy.

The board member of the special committee of Genesis, Paul Aronzon, commented:

"Today's agreement is a positive step forward and has a clear way to a mutual solution that maximizes the value",

The committee has given the company's restructuring efforts.

Genesis lawyer Sean O’Neal said that DCG would also bring in his capital participation in Genesis Global Trading (GGT) in Genesis Global Holdco and bring all the Genesis units together under the same holding company. He added:

"In the meantime, in these cases we will not only market and try the assets of the debtors and try to sell them, but also the ggs because they form a nice package, and we believe that we can maximize the return flows."

twin agreement

In addition, the Gemini crypto exchange also met with an agreement with Genesis and other creditors with "a plan that offers Earn users a way to get their assets back," as co-founder Cameron Winklevoss reported.

1/Today, @Zwillings A fundamental agreement with Genesis Global Capital, llc (genesis) met, 6. February 2023

In addition, Gemini has agreed to provide up to $ 100 million in additional means of additional means for EARN users.

gemini lent genesis funds and had up to $ 900 million in customer deposits that were blocked by the crypto loan.

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