Genesis Global Holdco, which filed for bankruptcy protection last month, has unveiled the final details of a proposed plan to sell itself and Genesis Global Trading to help parent Digital Currency Group pay off creditors. The proposal, filed with a bankruptcy court on Friday, involves DCG turning its equity in Genesis Global Trading over to Genesis Global Holdco, as part of an effort to sell both companies and restructure an existing loan. This plan is expected to help DCG pay off some of its creditors and provide a better future for both Genesis Global Holdco and Genesis Global Trading.
DCG, a digital currency group, is in the process of negotiating a deal to acquire Genesis Global Trading, a cryptocurrency trading firm. The deal would involve the “equitization” of Genesis’ assets, which would be mutually agreed by Genesis, GGC creditors, the Ad Hoc Group Advisors and DCG. This news was first reported by CoinDesk, a subsidiary of DCG. The acquisition would be a major milestone for DCG, as it would expand its presence in the cryptocurrency trading industry. It would also provide Genesis with the resources and expertise to further develop its trading platform and services. This deal could potentially benefit both companies, as well as the cryptocurrency trading industry as a whole.
Equitization is a restructuring process that may occur if the sale of all or most of the assets of Genesis does not take place. Under the Amended Plan, the GGC Creditors will receive 100% of the equity in reorganized GGH, subject to dilution by a management incentive program that may be approved by the Bankruptcy Court. This process will involve notice and hearing, and will provide the creditors with a stake in the company. It is a way for creditors to receive compensation for their investments, while also allowing the company to continue operations.
