Insiders: If Genesis goes bankrupt, DCG must immediately repay a $350 million loan to Eldridge

2022-12-20 14:14:06

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ChainCatcher news, according to the Financial Times, Digital Currency Group is trying to raise funds to avoid bankruptcy for its brokerage subsidiary Genesis, partly to avoid an immediate repayment of loans from American financier Todd Boehly's investment firm. Sources say that if Genesis goes bankrupt, the remaining $350 million of this loan will become due immediately.

Boehly provided debt financing for DCG through his investment group Eldridge last November, which included a $600 million loan jointly provided by Eldridge and other investors. Eldridge believes that Genesis's suspension of withdrawals means that DCG cannot repay its debts, thus it is in default. Eldridge is currently working with DCG to help it raise funds and pay Genesis's investors, clients, and customers.

It is reported that DCG owes Genesis $1.6 billion, but the loan it received from Eldridge has favorable terms. DCG stated that its relationship with Eldridge is "completely independent of Genesis's restructuring strategy and has no impact on any outcome for Genesis." (source link)

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Genesis DCG Eldridge Todd Boehly

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