DCG reaches agreement with Genesis bondholders! $1.1 billion principal converted into convertible preferred stock

Digital Currency Group (DCG) has reached a preliminary agreement with Genesis creditors (holding or representing over $2 billion in claims), where DCG will convert $1.1 billion in bonds due in 2032 into convertible preferred stock issued by DCG as part of Genesis' bankruptcy plan. DCG will also provide new senior secured term loans to creditors in two tranches as part of the deal, refinancing their existing 2023 term loan, with a total value of approximately $500 million. Additionally, as part of the transaction, DCG plans to sell equity in Genesis Global Trading, the cryptocurrency trading arm of Genesis, to Genesis Global Holdco, consolidating all Genesis entities under one holding company.

Digital Currency Group (DCG) and Genesis creditors (holding or representing over $2 billion in claims) have reached a preliminary agreement, where DCG will exchange $1.1 billion in bonds due in 2032 for convertible preferred stock issued by DCG as part of Genesis' bankruptcy plan. DCG will also provide new senior secured term loans in two installments to creditors, refinancing their existing $500 million term loan due in 2023, with a total value of approximately $500 million. As part of the deal, DCG also plans to sell the equity of Genesis Global Trading's cryptocurrency trading arm to Genesis Global Holdco, consolidating all Genesis entities under one holding company.

Additionally, as part of the agreement, Gemini has agreed to provide up to an additional $100 million in funding to Earn users as part of the plan. Before these transactions are completed, Genesis will initiate the sale process of Genesis Global Trading and explore other value-maximizing transactions, with the agreement still subject to final documentation and necessary court approvals.

Earlier reports from Foresight News indicated that DCG's debt to Genesis exceeds $1.65 billion, including a $575 million loan due in May of this year and a $1.1 billion note due in June 2032.

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