Genesis Global Holdco filed for bankruptcy protection last week. The company unveiled the final details to a plan to sell Genesis Global Trading and Genesis Global Holdco to help the parent Digital Currency Group pay some of its creditors.
A proposal filed before a bankruptcy court Friday stated that DCG will transfer its equity in Genesis Global Trading to Genesis Global Holdco as part of an effort sell both companies and to restructure an existing loan.
CoinDesk is also a subsidiary DCG. It first reported Monday that the companies were in negotiations to reach a deal.
The “equitization,” or sale of Genesis’ assets, would be one of the milestones. This will be agreed upon by Genesis, GGC creditors and the Ad Hoc Group Advisors, as well as DCG.
“Equitization” means that, if Genesis’ assets are not sold, the Amended Plan will allow for restructuring. The GGC Creditors will be entitled to one hundred percent (100%) equity in reorganized GGH. This equity may be diluted by a management incentive program, which can be approved by the Bankruptcy Court upon notice and hearing.”
Continue reading: Bankrupt Lender Genesis and Parent DCG Sign Initial Agreement with Main Creditors: Source