Digital Currency Group (DCG), the parent company of bankrupt trading firm Genesis Global Holdco, has just reached an agreement with the latter's creditors to settle claims.
DCG intends to enter into a debt repayment agreement and assume new obligations, including a $328.8 million loan with a two-year maturity and an $830 million seven-year loan.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
The company also plans to pay $275 million in four installments, according to court documents.
If the plan is successful, the unsecured lenders will recover between 70% and 90% of the funds invested in dollar terms and between 65% and 90%, depending on the type of digital asset.
On November 16, 2022, Genesis froze the withdrawal of funds and the issuance of new loans. The firm cited "increased demand" from clients following the collapse of FTX and hedge fund Three Arrows Capital.
The firm and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy in January. According to media reports, its liabilities exceed $3 billion, a figure that includes claims from Gemini's clients of $900 million.