The DCG holding company and its bankrupt Genesis subsidiaries have reached a preliminary agreement on the terms of a restructuring plan with major creditors. CoinDesk reports.<\/p>\n
According to the publication’s sources, the arrangements envisage a gradual write-down of Genesis’s loan book and the sale of insolvent entities.<\/p>\n
The package also contemplates refinancing the outstanding loans DCG extended to its subsidiary, amounting to roughly $500 million in fiat and about $100 million in Bitcoin.<\/p>\n
The agreement includes the recognition of a 10-year, $1.1 billion note issued by the Genesis parent company as equity. Financial support<\/a> for the group’s lending business became necessary following the June 2022 bankruptcy of the cryptocurrency Three Arrows Capital hedge fund<\/a>.<\/p>\n A creditors’ group representing both corporate and individual creditors has been negotiating on behalf of those claimants, with total claims of around $2.4 billion.<\/p>\n The proposed deal will be presented to other creditors, including hundreds of thousands of Gemini Earn product clients<\/a>, a CoinDesk source said.<\/p>\n On November 16, 2022, the crypto-lending platform Genesis Global Capital froze withdrawals<\/a> and the issuance of new loans. The firm cited an upswing in client requests after the collapse of FTX<\/a>.<\/p>\n In January, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy<\/a>. Reports suggest their liabilities exceed $3 billion<\/a>.<\/p>\n Earlier it emerged that DCG is considering selling its stake in CoinDesk amid financial problems at other group entities.<\/p>\n","protected":false},"excerpt":{"rendered":" The DCG group and its bankrupt Genesis subsidiaries have reached a preliminary agreement on the terms of a restructuring plan with major creditors, CoinDesk reports.<\/p>\n","protected":false},"author":1,"featured_media":73710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,184,1380],"class_list":["post-73709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-dcg","tag-genesis-global-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"29","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73709"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73709\/revisions"}],"predecessor-version":[{"id":73711,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73709\/revisions\/73711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73710"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}