Genesis Global Holdco sets bid procedures; seeks June 27 auction

By Sarah Lizee

Olympia, Wash., March 17 – Genesis Global Holdco, LLC filed bid procedures Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The company is engaging in a marketing and sale process to monetize Genesis Global Trading, Inc., a non-debtor that is wholly owned by Genesis Global’s parent company, Digital Currency Group (DCG); Genesis Global Holdco; and Genesis Global Holdco’s subsidiaries, including debtors and non-debtors that are indirectly owned by DCG. All of these comprise the company’s business, known as the Genesis platform.

As previously reported, the company filed a restructuring term sheet that reflects an agreement with 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 term sheet contemplates a dual-path toggle structure. The sale will be effectuated under a Chapter 11 plan and the proceeds will be used to pay creditors on a pro rata basis. Simultaneously, the debtors will pursue confirmation of the joint Chapter 11 plan, under which any unsold assets may be restructured through an equitization or wind-down.

Genesis said the bid procedures will establish an open process for the solicitation, receipt and evaluation of bids on an efficient timeline.

Under the proposed bid procedures, bids are due by June 15, a stalking horse designation deadline is set for June 19, an auction will be held on June 27, and a sale hearing will take place on July 14.

The debtors and DCG have agreed that the parent company will have all final decision-making power regarding the sale process and terms relating to non-debtor Genesis Global Trading.

Moelis & Co. LLC is the company’s investment banker.

Genesis Global is a New York-based cryptocurrency lender. The company filed bankruptcy on Jan. 19 under Chapter 11 case number 23-10063.

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