Genesis, a crypto lending subsidiary of the cryptocurrency venture capital firm Digital Currency Group (DCG), has reached a tentative deal with its creditors to resolve its bankruptcy case.
The court filing published on Aug. 29 reveals that the unsecured creditors could get back 70%–90% of their claims in U.S. dollars or 65%–90% in digital assets, depending on the type of asset.
A CoinTelegraph report added that the deal also involves DCG taking on new debt facilities and making partial repayments to its debtors before the plan becomes effective.
The new debt facilities include a $328.8 million first-lien loan with a two-year term and a $830 million second-lien loan with a seven-year term. The partial repayments amount to $275 million in total, to be paid in installments before the plan’s effective date.
These payments are meant to cover DCG’s existing liabilities, which consist of $630 million in unsecured loans due in May 2023 and $1.1 billion under an unsecured promissory note due in 2032.
Genesis filed for bankruptcy in January 2023 after suffering heavy losses during the 2022 crypto market crash.
The company had more than $3.5 billion in debt to its top 50 creditors, including prominent names like Gemini and VanEck’s New Finance Income Fund.
