{"id":5230,"date":"2023-02-07T02:05:58","date_gmt":"2023-02-07T02:05:58","guid":{"rendered":"http:\/\/ci02b745f8500027c1"},"modified":"2023-02-07T02:05:58","modified_gmt":"2023-02-07T02:05:58","slug":"dcg-genesis-reach-restructuring-agreement","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/dcg-genesis-reach-restructuring-agreement","title":{"rendered":"Digital Currency Group And Genesis Reach Restructuring Agreement With Creditors"},"content":{"rendered":"
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Genesis, a subsidiary of Digital Currency Group, has reached a restructuring agreement with key creditors according to statements by Cleary Gottlieb attorney Sean O’Neal, representing Genesis. It would see the sale of Genesis Global Trading, amongst other moves designed to \u201cmaximize the recoveries to the estate.\u201d<\/p>\n

Also included in the deal will be restructurings of the debt that Digital Currency Group, who owns Genesis<\/a> and its entities, owes to Genesis Holdco, which was one of the legal entities that previously filed for Chapter 11 protection<\/a>. These terms include a second lien term loan facility with a maturation date of June 2024.<\/p>\n

According to O\u2019Neal, within the plan there will be two tranches, one dominated in U.S. dollars that will pay 11.5% interest, and another denominated in bitcoin that will pay 5% interest. O\u2019Neal also detailed that DCG has agreed to issue a type of convertible preferred stock, however the specifics of this issuance are still being determined.<\/p>\n

The lending arm of Genesis was forced to halt withdrawals<\/a> in November 2022 after the contagion from the collapse of crypto exchange FTX<\/a> earlier that same month. The company filed for bankruptcy last month, with its lawyers stating then that they anticipate reaching a deal with creditors by the end of January 2023.<\/p>\n

Genesis\u2019 collapse also led to the freezing of withdrawals for Gemini Earn users, who received yield through arrangements with Genesis\u2019 lending arm. Cameron Winklevoss, President of Gemini, had previously expressed his displeasure<\/a> at the situation through a letter posted to Twitter addressing the issues. During the hearing today, he tweeted<\/a> that Gemini will contribute up to $100 million more for the recovery for Earn users, who still do not have access to their funds.<\/p>\n

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3\/ In addition, Gemini will be contributing up to $100 million more for Earn users as part of the plan, further demonstrating Gemini\u2019s continued commitment to helping Earn users achieve a full recovery.<\/p>\n

— Cameron Winklevoss (@cameron) February 6, 2023<\/a><\/p><\/blockquote>\n