Genesis Global disclosure statement hearing moved to July 27

By Sarah Lizee

Olympia, Wash., July 13 – Genesis Global Holdco, LLC’s hearing on approval of the disclosure statement for its Chapter 11 plan has been moved to July 27 from July 20, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

As background, since November the debtors have engaged in discussions with their creditors, including with two informal groups of lenders of Genesis Global Capital, LLC, representing more than $2 billion in outstanding loans, and Digital Currency Group, Inc. (DCG), Genesis Global Holdco’s corporate parent and its largest borrower.

In February, an agreement in principle was reached between the debtors, DCG, Gemini Trust Co., LLC and some members of the informal groups. A restructuring term sheet was filed with the court on Feb. 10.

Since filing the restructuring term sheet, the debtors have continued their discussions with various stakeholders, including the official committee of unsecured creditors.

While these discussions were initially focused on resolving issues left open in the restructuring term sheet, more recent discussions made it clear that a mediator was necessary to assist in reaching a resolution of the amount, form, timing and other terms and conditions of DCG’s contribution to the debtors’ reorganization plan, Genesis said.

The mediation was set to end on July 10.

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 Digital Currency Group 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 would also contribute its equity interest in Genesis Global Trading to Genesis Global Holdco, bringing all Genesis entities under the same holding company.

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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