Genesis Global reaches agreement with parent DCG, creditor groups

By Sarah Lizee

Olympia, Wash., Feb. 6 – Genesis Global Holdco, LLC announced Monday that it reached an agreement in principle with parent company Digital Currency Group (DCG) and informal groups of creditors of debtor Genesis Global Capital, LLC, which hold or represent more than $2 billion in asserted claims in total.

The agreement in principle lays out a framework for a global resolution that will maximize value for all Genesis clients and stakeholders, Genesis said in a press release.

Under the terms of the agreement, DCG would exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’ Chapter 11 plan.

DCG would also refinance its existing 2023 term loans through a new, junior secured term loan in two tranches made payable to creditors in the total value of about $500 million.

As part of the transactions, DCG will also contribute its equity interest in Genesis Global Trading to Genesis Global Holdco, bringing all Genesis entities under the same holding company.

In addition, as part of the agreement, Gemini has agreed to contribute up to $100 million in additional funds to “Earn” users as part of the plan.

Pending the closing of these transactions, Genesis will launch a sale process for Genesis Global Trading and explore other value-maximizing transactions.

The agreement in principle remains subject to definitive documentation and necessary court approvals.

As previously reported, the company filed a Chapter 11 plan while it was still in discussions with its corporate parent company, to which it owes at least $1.65 billion, and the informal creditor groups.

Genesis Global is a New York-based cryptocurrency lender. The company filed bankruptcy on Jan. 19 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 23-10063.

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