​​ Genesis Global announces agreement with Digital Currency G | Goodcrypto Announcment [old]

​​ Genesis Global announces agreement with Digital Currency Group and creditors

Genesis Global has reached an agreement with Digital Currency Group (DCG) and its creditors to restructure its crypto trading and market-making arm. In addition, the deal will see DCG contribute its share of equity in Genesis Global Trading, which will be sold as part of the restructuring efforts.

The agreement will bring all Genesis-related entities under the same holding company and will see DCG exchanging a $1.1 billion promissory note for convertible preferred stock. Additionally, DCG will refinance its existing term loans and make them payable to creditors.

Gemini will also contribute $100 million for its Gemini Earn users who have funds frozen with the bankrupt firm. The restructuring plan, pending court approval, will result in the sale of Genesis Global Trading.

A recent update from Genesis creditor and crypto yield platform Donut stated that the restructuring plan has a recovery rate of approximately 80 cents per dollar deposited, with a path to $1.00 for creditors. The recoverable amount will depend on the equity note, realized liquidation prices, and any unknown costs associated with the bankruptcy.

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