Gemini briefed about DCG's debt payments. In the statement, DCG did not pay the approximately $630 million due last week. We are evaluating whether to provide a tolerance to DCG in order to prevent DCG from defaulting.
Digital Currency Group Fails to Pay Its Overdue Debt
First, Digital Currency Group Inc., the parent company of Genesis Global Capital, LLC (Genesis). (DCG) did not pay the approximately $630 million due last week.
Genesis, the Unsecured Creditors Committee (UCC), Ad Hoc Group of Creditors (AHG), and Gemini are considering whether to provide DCG with a tolerance to avoid DCG default.
The assessment will be based in part on whether the parties believe DCG will engage in bona fide negotiations for a compromise settlement.
Second, if an agreement cannot be reached, Gemini is working with Genesis to propose terms for a modified restructuring plan that can be advanced without DCG's consent.
To that end, Genesis filed a petition with the Bankruptcy Court on Friday, requesting an extension of the concession period to propose such a plan. This would be a plan that Gemini would contribute, even if he did not openly support it.
Third, Gemini prepares the Gemini Master Claim, which should be filed on Monday. Gemini Master Claims is seeking the return of over $1.1 billion in digital assets that Genesis refused to refund to 232,000 Earn users with active credit as of January 19, 2023.
*Not investment advice.