Digital Currency Group (DCG) has reached an agreement in principle with Genesis creditors (holding or representing more than US$2 billion of claims). DCG will exchange US$1.1 billion of bonds due in 2032 for convertible preferred shares issued by DCG as a As part of Genesis' bankruptcy plan, DCG will also refinance its existing 2023 term loan through a new junior secured term loan payable to creditors in two tranches, with a total value of approximately $500 million. As part of the deal, DCG also plans to sell a stake in Genesis’ crypto trading arm, Genesis Global Trading, to Genesis Global Holdco, bringing all Genesis entities under the same holding company.
Additionally as part of the agreement, Gemini has agreed to provide up to $100 million in additional funding to Earn users as part of the program. Pending the completion of these transactions, Genesis will initiate a sale process for Genesis Global Trading and explore other value-maximizing transactions, and the agreement remains subject in principle to final documentation and necessary court approvals.
Foresight News previously reported that Digital Currency Group (DCG) owes more than $1.65 billion to Genesis, including a $575 million loan due in May this year and a $1.1 billion promissory note due in June 2032.
(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.)
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