Genesis Unveils Proposed Sale Plan With DCG, Bankruptcy Creditors
Parent company Digital Currency Group would turn its equity in Genesis Global Trading over to a holding company as part of an effort to sell both firms.
Genesis Global Holdco, which filed for bankruptcy protection last month, unveiled the final details of a proposed plan to sell itself off alongside Genesis Global Trading to help parent Digital Currency Group pay off some of the firm's creditors.
According to a proposal filed with a bankruptcy court on Friday, DCG will turn 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.
CoinDesk, which is also a subsidiary of DCG, first reported that the companies were negotiating a deal on Monday.
One of the sale process milestones would be the "equitization" of Genesis' assets, to be mutually agreed by Genesis, GGC creditors, the Ad Hoc Group Advisors and DCG.
"'Equitization' means, if the Sale Process does not result in the sale of all or substantially all of the assets of Genesis, a restructuring under the Amended Plan pursuant to which the GGC Creditors will receive, among other things, one hundred percent (100%) of the equity in reorganized GGH, subject to dilution by a management incentive program that may be implemented with the approval of the Bankruptcy Court, upon notice and hearing," the filing said.
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