Digital Currency Group's Genesis Reaches Preliminary Agreement with Creditors, Promising Recovery for Unsecured Creditors
Summary:
Crypto venture capital firm Digital Currency Group (DCG) has reached a preliminary agreement with creditors of its subsidiary Genesis, a crypto lending firm. The agreement could result in recoveries of 70% to 90% for unsecured creditors. DCG plans to enter into new debt facilities and a partial repayment agreement to settle its existing liabilities. Genesis, which filed for bankruptcy in January 2023, owed over $3.5 billion to its top creditors.
Venture capital firm Digital Currency Group (DCG) has reached a preliminary agreement with the creditors of its crypto lending subsidiary, Genesis, according to a court filing. The estimated recoveries for unsecured creditors could range from 70% to 90% if the amended plan is finalized. The filing also mentions that the recovery on an in-kind basis could be between 65% and 90%, depending on the denomination of the digital asset. To fulfill its existing liabilities, DCG plans to enter into new debt facilities and a partial repayment agreement. This includes a first-lien facility with a two-year maturity of $328.8 million and a second-lien facility of $830 million with a seven-year maturity. Prior to the effective date of the plan, DCG will also make installment payments totaling $275 million. Genesis, like many other crypto lending firms, faced financial difficulties during the 2022 bear market and filed for bankruptcy in January 2023. The company owed over $3.5 billion to its top 50 creditors.
Published At
8/29/2023 8:22:28 AM
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