Digital Currency Group (DCG) is trying to raise funds to avoid bankruptcy of its subsidiary Genesis, in part to avoid immediate repayments of a loan from US financier Todd Boehly, who in November last year raised money through his own investment, the Financial Times reported, citing sources. Group Eldridge secured a debt financing for DCG that included a $600 million loan from Eldridge and a group of other investors.
People familiar with the matter said that if Genesis goes bankrupt, the remaining $350 million of the loan will become due immediately, and the senior secured term loan will rank higher than other debt and have certain priority, which means that in any event All must be repaid first. Eldridge believes that Genesis' suspension of withdrawals means that DCG cannot repay its debt and is therefore in default. However, Eldridge is eager to avoid losing its investment and is working with DCG to help it raise funds and pay Genesis investors and customers.
(This article is reprinted with permission from Foresight News. Foresight News is a Chinese content platform in the Web3 vertical field. It adheres to the basic principles of "objectivity and neutrality" and is committed to creating a Chinese portal for the Web3 world.)
This article Insider: If Genesis goes bankrupt, DCG will need to immediately repay a US$350 million loan to Eldridge. It first appeared on Chain News ABMedia.