Genesis Creditors Say DCG’s Proposal is Unsatisfactory
A court has suspended the bankruptcy process of Genesis Global Holdco due to creditors’ disagreement with the terms proposed by Digital Currency Group (DCG).
The proposed deal included DCG repaying two loans amounting to $1.158 billion, with a repayment period of two years for $328.8 million and seven years for $830 million, with the repayment amounting between 70% to 90% of the funds invested by investors (in dollar equivalent).
Borrowers opposed the proposed release of the firm and its CEO from future lawsuits, which caused them to threaten to veto any bankruptcy deal that included this motion.
Also, lawyers for Gemini highlighted that the terms provided by the debtors lacked detail and didn’t provide any guarantees for large creditors.
Therefore, the proposed transaction could be deemed “woefully unsustainable from an economic point of view.”
