• DCG and Genesis have reached an agreement with a key group of creditors to sell the Genesis Trading Unit as part of its bankruptcy restructuring.
• Cleary Gottlieb attorney Sean O’Neal explained that DCG will contribute the Genesis Global Trading unit to Genesis Global Holdco, which will be marketed and sold as a package.
• The proposed deal also involves a restructuring of debt between DCG and Genesis Holdco, with two tranches denominated in U.S. Dollars and Ethereum.
DCG Creditor Pact Revealed With Plan to Sell Genesis Trading Unit as Part of Bankruptcy
Earlier Monday, CoinDesk reported that DCG and Genesis had reached an agreement with a key group of creditors. By Nikhilesh De, Nick Baker Feb 6, 2023 at 10:02 p.m. UTCUpdated Feb 7, 2023 at 2:59 p.m. UTC
Details of Agreement
Digital Currency Group (DCG) intends to sell its subsidiary Genesis‘ crypto trading business as well as its lending arm, which is restructuring through bankruptcy, a Genesis attorney said Monday as the company revealed a pact with creditors. Cleary Gottlieb attorney Sean O’Neal, representing Genesis, explained the proposed settlement during the status hearing for the crypto lender which filed for bankruptcy protection last month. Under the settlement, DCG would contribute that entity [Genesis Global Trading] to [Genesis Global Holdco] … that will happen on the effective date,“ O’Neal said“. In addition to this transaction there will be a restructuring of debt owed from DCG to Gensis Holco under new terms involving two tranches denominated in U.S dollars and Ethereum .
CoinDesk reported earlier Monday that DCG and Gensis had reached an agreement with key creditors regarding these matters . CoinDesk , like Gensis is owned by DCG .
About Digital Currency Group
Digital Currency Group founder Barry Silbert (DCG) is dedicated to building digital currency businesses globally by providing thought leadership through investing , media , public policy advocacy , development capital ,and recruitment services .
In conclusion , Digital Currency Group has come to an agreement with their subsidiaries Gensis regarding selling off their trading unit while also restructuring debt via two tranches denominated in USD & ETH . This was first reported by CoinDesk who are owned by Digital Currency Group just like Gensis itself .