Source: If Genesis Goes Bankrupt, DCG Must Immediately Repay Eldridge $350 Million Loan

According to sources cited by the Financial Times, Digital Currency Group (DCG) is reportedly trying to raise funds to prevent its subsidiary Genesis from going bankrupt. Part of the reason is to avoid the immediate repayment of a loan from American financier Todd Boehly. In November last year, Boehly, through his investment group Eldridge, provided DCG with a debt financing of $600 million, along with a group of other investors.

According to sources cited by the Financial Times, Digital Currency Group (DCG) is attempting to raise funds to prevent its subsidiary Genesis from going bankrupt. Part of the reason is to avoid immediately repaying a loan to American financier Todd Boehly. In November last year, Boehly, through his investment group Eldridge, provided a $600 million loan to DCG as part of a debt financing deal.

Insiders indicate that if Genesis were to go bankrupt, the outstanding $350 million from this loan would become due immediately, with the senior secured term loan ranking ahead of other debts and holding a certain level of priority, meaning it must be repaid first under any circumstance. Eldridge believes that Genesis' suspension of withdrawals indicates DCG's inability to repay the debt, putting it in default. However, Eldridge is eager to avoid losing its investment and is collaborating with DCG to help raise funds and pay Genesis' investors and clients.

(This article is authorized reprinted from Foresight News, Foresight News is a Chinese content platform in the Web3 vertical field, upholding the basic principles of "objectivity" and "neutrality," dedicated to creating a Chinese gateway to the Web3 world.)