Digital Currency Group (DCG), parent company of Genesis Capital refuseIn a statement on Jan. 20, DCG noted that a special committee of independent directors recommended and decided to file for Chapter 11 bankruptcy protection.
The Chapter 11 filing will allow Genesis to initiate a restructuring of debt, assets, and other business activities, with the company estimated liabilities at $1 billion to $10 billion. with assets in the same value range
DCG stated in a statement: “Genesis has its own independent management team, legal advisors, and financial advisors. and appointed a special committee of independent directors It is responsible for the restructuring of Genesis Capital and guides and decides Genesis Capital in Chapter 11 filings which both DCG and any of its employees. Including those who serve on Genesis’ Board of Directors, were not involved in the decision of the bankruptcy filing.”
Only Genesis Lending Entities (Genesis Global Holdco, Genesis Global Capital and Genesis Asia Pacific – collectively “Genesis Capital”) have filed for bankruptcy protection. Genesis derivatives will continue to operate.
DCG said it intends to continue operating as normal. According to the statement, along with other subsidiaries including Grayscale Investments, Foundry Digital, Lino Group Holdings, CoinDesk and TradeBlock Corporation.
In a letter sent to shareholders on Jan. 17, DCG confirmed that it owes “$526 million due in May 2023 and $1.1 billion under promissory notes (P/Ns) due in June. 2032”, with the Company intending to fulfill its obligations to Genesis Capital during the restructuring. And the letter also announced a halt to quarterly dividends to maintain liquidity.
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