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DCG Looks to Refinance Outstanding Genesis Obligations, Raise Growth Capital
The crypto conglomerate may owe its bankrupt lending division hundreds of millions in loan payments, due in May.
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Digital Currency Group (DCG) is looking to refinance outstanding obligations with its bankrupt lending division Genesis and raise growth capital, the crypto conglomerate said on Tuesday.
Outstanding obligations can take the form of loans, receivables or any payments due between the two entities. The lending platform's bankruptcy filings from January revealed DCG's total debt to Genesis includes $575 million due this month, and a $1.1 billion promissory note due June 2032. CoinDesk reported in February that DCG, which is CoinDesk's parent company, may have borrowed around $500 million in cash and as much as $100 million worth of bitcoin
from Genesis.STORY CONTINUES BELOW
The move is meant to provide "further financial flexibility" as DCG engages with stakeholders in Genesis Capital's bankruptcy proceedings, DCG said.
DCG was hit hard by the crypto market collapse last year, with its subsidiary Genesis ending up in bankruptcy court.
Parties to Genesis' bankruptcy proceedings have agreed to a 30-day mediation period to iron out the terms and conditions of DCG's contribution to the reorganization plan. DCG has said the mediation request reflected several creditors backing out of a previous agreement.
"We are committed to reaching a fair outcome for all and look forward to a productive resolution during this mediation period," the notice said.
CoinDesk has reached out to DCG for further comment.
Read more: Genesis Bankruptcy Parties Agree to 30-Day Mediation Period
Update (May 9, 13:33 UTC): Adds more detail on DCG's outstanding obligations to Genesis in second paragraph.
Sandali Handagama
Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali
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