The last time we were able to write about Genesis, a crypto currency lender in a difficult situation, was at the beginning of the year. The platform stopped payments in mid-November and the payment has not been restored since then. They still owe more than $3 billion to their customers. The company is owned by the Digital Currency Group, which manages more than 50 billion dollars in assets and they also own, for example, Coindesk and Grayscale.
The Genesis plan also appears to hold promise for lenders
The holding company Genesis Global Holdco requested bankruptcy protection from the Genesis group of companies back in January. At the time, he also announced plans to try to sell himself and Genesis Global Trading in order to reduce the huge debt. According to a draft submitted to the bankruptcy court on Friday, DCG will transfer its existing stake in Genesis Global Trading to Genesis Global Holdco, in preparation for the sale of the two companies.. In addition, with this step, existing loans can also be refinanced.
According to Coindesk, which is considered a DGC insider, serious negotiations have taken place between the various actors in recent days and an agreement is on the horizon. As an important step in selling Genesis, they are trying to “equal sales” of all Genesis tools. Including the infamous 10-year promissory note that DCG gave Genesis for the failed Three Arrows Capital claims. This process must be agreed upon by DCG, Genesis, lenders and advisers. The equal sale is necessary in case Genesis cannot be sold in its entirety or almost in its entirety. At that time, all the shares of the reorganized Genesis Global Holdco will be distributed among the creditors. After that, this company should be boosted enough that the participants can expect some kind of return.