DCG Repays Short-Term Loans from Bankrupt Subsidiary Genesis
The Digital Currency Group (DCG) has announced that it has successfully paid off all short-term loans from its bankrupt subsidiary, Genesis. This comes after DCG paid off more than $1 billion of debt to various creditors over the past year. Nearly $700 million was directed towards Genesis, fulfilling all current obligations.
DCG Completes $700 Million Payoff
Barry Silbert, the founder and CEO of DCG, confirmed the completion of the payoff. He stated that despite industry challenges, DCG has repaid over $1 billion of debt, including the approximately $700 million owed to Genesis. Silbert expressed excitement about the industry’s future and DCG’s leadership role in it.
Genesis’ Bankruptcy and Repayment Deal
In November 2022, Genesis ceased withdrawals and filed for bankruptcy in January 2023. The company then initiated legal action against DCG to recover an overdue loan amount exceeding $610 million. In November, a repayment deal was struck, with DCG committing to paying $200 million. The outstanding loan amount must be settled by April 2024 as per the approved bankruptcy plan.
DCG to Retain Stake During Bankruptcy Proceedings
DCG will maintain its ownership structure in Genesis until the conclusion of the bankruptcy proceedings. The venture capital firm’s stake in Genesis must remain above 80% until the Chapter 11 plan is approved or converted into a Chapter 7 proceeding. This decision ensures that Genesis can preserve its tax advantages and potential value of federal net operating loss carryforwards.
Hot Take: DCG Repays Short-Term Loans from Genesis Amid Bankruptcy
The Digital Currency Group (DCG) has successfully paid off all short-term loans from its bankrupt subsidiary, Genesis. With over $1 billion of debt repaid in the past year, DCG directed nearly $700 million towards fulfilling its obligations to Genesis. Despite industry challenges, DCG remains optimistic about the future and its leadership role in the crypto space. Genesis, which filed for bankruptcy in January 2023, reached a repayment deal with DCG in November. The outstanding loan amount must be settled by April 2024 according to the approved bankruptcy plan. DCG will retain its ownership stake in Genesis until the conclusion of the bankruptcy proceedings, allowing Genesis to preserve tax advantages and potential value.
By
By
By
By