TechFlow news, according to the Financial Times, Digital Currency Group (DCG) is attempting to raise funds to avoid bankruptcy of its brokerage subsidiary Genesis, partly to prevent the immediate repayment of a loan from U.S. financier Todd Boehly's investment firm. Sources said if Genesis were to go bankrupt, the remaining $350 million on that loan would become immediately due.
Boehly last November provided DCG with debt financing through his investment group Eldridge, including a $600 million loan co-funded by Eldridge and other investors. Eldridge believes Genesis' suspension of withdrawals means DCG cannot repay its debts and is therefore in default. Currently, Eldridge is working with DCG to help it raise funds and pay Genesis' investors, clients, and customers.
It is reported that DCG owes Genesis $1.6 billion in debt, but the loan it received from Eldridge carries preferential terms. DCG stated that its relationship with Eldridge is "entirely separate from Genesis' restructuring strategy and has no impact on any outcome for Genesis."Source link
