GENESIS REACHES AGREEMENT IN PRINCIPLE WITH DCG, KEY CREDITORS ON GLOBAL RESOLUTION

KUALA LUMPUR, Feb 7 (Bernama) -- Genesis Global Holdco LLC (Genesis or GGH) has reached an agreement in principle among Digital Currency Group (DCG) and the ad hoc groups of creditors of Genesis Global Capital LLC (the Ad Hoc Groups) which, in the aggregate, hold or represent more than US$2 billion in asserted claims. (US$1=RM4.30)

According to a statement, the agreement in principle lays out a framework for a global resolution that will maximise value for all Genesis clients and stakeholders.

“I am grateful to the talented team at Genesis for their ongoing dedication and commitment to client service, and excited about working together to build Genesis for the future.

“I also want to express my deep appreciation to all of our clients for their continued patience and loyalty as we work through a resolution for our lending business,” said Genesis Interim Chief Executive Officer, Derar Islim.

Under the terms of the agreement, DCG would exchange its existing US$1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’s Chapter 11 plan.

DCG would also refinance its existing 2023 term loans through a new, junior secured term loan in two tranches made payable to creditors in the aggregate total value of approximately US$500 million.

As part of the transactions, DCG will also contribute its equity interest in Genesis Global Trading (GGT) to GGH, bringing all Genesis entities under the same holding company.

Pending the closing of these transactions, Genesis will launch a sale process for GGT and explore other value-maximising transactions.

The agreement in principle remains subject to definitive documentation and necessary court approvals. All aspects of the Genesis restructuring process are being overseen by an independent special committee of the company’s board of directors.

-- BERNAMA