Digital Currency Group (DCG), the parent company of Genesis Global Holdco, has reached an in-principle agreement with creditors to resolve the claims of the insolvent crypto lender.
According to a court filing dated August 29, approval of the plan could result in recovery of 70% to 90% of unsecured creditors in USD equivalent and a recovery rate of 65% to 90% depending on the value of digital assets. Is. ,
- The filing also states that Genesis’ liabilities include $630 million in unsecured debt due in May 2023 and $1.1 billion in unsecured promissory notes due in 2032.
- Thus, DCG may potentially engage in fresh debt arrangements as well as part repayment arrangements to meet its existing obligations towards creditors.
- These loans include a $328.8 million first-lien facility maturing in two years and an $830 million second-lien facility with a maturity of seven years.
- The Barry Silbert-led group also plans to pay $275 million in four tranches.
- Two months after suspending withdrawals citing unprecedented market turmoil following the FTX explosion, Genesis filed for Chapter 11 bankruptcy protection in the Southern District of New York (SDNY) court in January this year.
- The once-major crypto lender owes more than $3.5 billion to its top 50 creditors, including the Winklevoss-twins Gemini, MoonAlpha Finance and VanEck’s New Finance Income Fund.
- This development comes a little more than a week after Genesis and FTX reached a settlement over a $175 million claim.
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source: cryptopotato.com
