Troubled crypto brokerage firm Genesis and its parent company Digital Currency Group (DCG) have reached an agreement on terms of a restructuring plan with a group of key creditors with claims of around $2.4 billion, CoinDesk (owned by DCG) has learned, citing sources close to the talks.
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Under the agreement, Genesis will wind down its loan book and terminate the sale of its bankrupt entities. The deal also includes refinancing the outstanding loans worth $500 million in cash and about $100 million worth of bitcoin (EXANTE: Bitcoin) from Genesis. Before being finalized, the restructuring plan will be offered to other minor creditors, including customers of Gemini Earn, the report says.
Genesis Global Capital filed for Chapter 11 bankruptcy in mid-January this year. According to court filings, the company has more than 100,000 creditors with assets and liabilities ranging from $1 billion and $10 billion.
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