תוכנית התשלומים של DCG על קרקע רעועה כאובייקטים של קבוצת Genesis Lender

תוכנית התשלומים של DCG על קרקע רעועה כאובייקטים של קבוצת Genesis Lender

חותמת זמן: 30 באוגוסט 2023 12:21
צומת המקור: 2243779

The Ad Hoc
Group, a group of creditors claiming approximately $2.4 billion against
bankrupt digital asset lender, Genesis, has opposed the in-principle agreement reached between Digital
Currency Group (DCG) and the Committee of Unsecured Creditors (UCC).

בית משפט
document filed yesterday (Tuesday) shows that DCG, the parent company of
בראשית, agreed to pay $275
מִילִיוֹן לפני
Genesis’ Chapter 11 bankruptcy plan becomes effective. The blockchain-focused
venture capital company also tentatively agreed to pay approximately $328.8 million in
“first-lien” debt two years after the plan
receives the court’s go-ahead.

יתר על כן,
DCG proposed to make a payment of around $830 million seven years after the
plan was kicked off. This
payment is to comprise 55% in US dollars and 45% in Bitcoin and Ethereum, two of the world’s foremost digital currencies. The long-term commitment comes
with an interest rate of 6%.

עם זאת, ב
a separate court filing also entered yesterday, the Ad
Hoc Group described the proposed amounts as “wholly insufficient”. They also
criticized the item in the in-principle agreement that grants “non-consensual third-party releases” to DGC. This proposed clause
means that DCG will be exempted from any claims or liabilities that could be
brought against it by creditors such as the Ad Hoc Group

Loan Debts

בינואר,
בראשית הגיש בקשה
הגנה מפני פשיטת רגל in New York after the collapse of crypto hedge
קֶרֶן, שלוש בירות חץ
(3AC), ו
חילופי מטבעות FTX, threw its business into a liquidation
משבר, האוצר מגנטים דיווח.

According to the Ad Hoc Group, Genesis had a $2.3 billion exposure to 3AC. However, after liquidating
collateral in its possession, the crypto lender reduced
the 3AC-related
losses to $1.2 billion.

למרות
these losses, Genesis allegedly continued to solicit hundreds of millions in
additional loans from creditors, including many members of the Ad Hoc Group.
Furthermore, DCG reportedly issued a promissory note of $1.1 billion payable to
Genesis only in 2032 at an annual interest rate of 1%. However, the Genesis
parent company allegedly framed this written promise as a “near-term
receivable”.

כתוצאה
of Genesis’ losses, DCG is supposed to pay approximately $630 million in
May 2023 to Genesis’ creditors. However, it has allegedly failed to do
so, the Ad Hoc Group claimed in the court filing.

Maximizing Creditor Recoveries: A Mandate Ignored?

With the in-principle agreement,
DCG is now proposing
to pay $604 million to the creditors in two
years’ time instead of
$630 million, the Ad Group further asserted. In addition, instead of releasing $1.1
billion as pledged in the promissory note, DCG is now proposing to pay $830
million in seven years at “sub-market interest rates,” the Ad Hoc Group further
טען.

“At its
essence, [the DCG
in-principle deal] demonstrates that [Genesis] and UCC are unwilling to comply
with their fiduciary obligations to maximize creditor recoveries, and are
instead focused on putting this case behind them,” the Ad Hoc Group noted. “However,
the Ad Hoc Group, which includes dozens of creditors for whom these assets are
critical, does not have such luxury and cannot support the proposed terms of
the Plan Update which permit DCG to walk away untouched and, in fact, paying
less than already committed.”

אם
suggested agreement is finalized in official documents and a Chapter 11 plan is
put forward, the Ad Hoc Group plans to object to Genesis’
אִרְגוּן מִחָדָשׁ.

SEC מאשימה את Citigroup; FMA ו-FCA מזהירים מפני אתרי שיבוט; קרא את קטעי החדשות של היום.

The Ad Hoc
Group, a group of creditors claiming approximately $2.4 billion against
bankrupt digital asset lender, Genesis, has opposed the in-principle agreement reached between Digital
Currency Group (DCG) and the Committee of Unsecured Creditors (UCC).

בית משפט
document filed yesterday (Tuesday) shows that DCG, the parent company of
בראשית, agreed to pay $275
מִילִיוֹן לפני
Genesis’ Chapter 11 bankruptcy plan becomes effective. The blockchain-focused
venture capital company also tentatively agreed to pay approximately $328.8 million in
“first-lien” debt two years after the plan
receives the court’s go-ahead.

יתר על כן,
DCG proposed to make a payment of around $830 million seven years after the
plan was kicked off. This
payment is to comprise 55% in US dollars and 45% in Bitcoin and Ethereum, two of the world’s foremost digital currencies. The long-term commitment comes
with an interest rate of 6%.

עם זאת, ב
a separate court filing also entered yesterday, the Ad
Hoc Group described the proposed amounts as “wholly insufficient”. They also
criticized the item in the in-principle agreement that grants “non-consensual third-party releases” to DGC. This proposed clause
means that DCG will be exempted from any claims or liabilities that could be
brought against it by creditors such as the Ad Hoc Group

Loan Debts

בינואר,
בראשית הגיש בקשה
הגנה מפני פשיטת רגל in New York after the collapse of crypto hedge
קֶרֶן, שלוש בירות חץ
(3AC), ו
חילופי מטבעות FTX, threw its business into a liquidation
משבר, האוצר מגנטים דיווח.

According to the Ad Hoc Group, Genesis had a $2.3 billion exposure to 3AC. However, after liquidating
collateral in its possession, the crypto lender reduced
the 3AC-related
losses to $1.2 billion.

למרות
these losses, Genesis allegedly continued to solicit hundreds of millions in
additional loans from creditors, including many members of the Ad Hoc Group.
Furthermore, DCG reportedly issued a promissory note of $1.1 billion payable to
Genesis only in 2032 at an annual interest rate of 1%. However, the Genesis
parent company allegedly framed this written promise as a “near-term
receivable”.

כתוצאה
of Genesis’ losses, DCG is supposed to pay approximately $630 million in
May 2023 to Genesis’ creditors. However, it has allegedly failed to do
so, the Ad Hoc Group claimed in the court filing.

Maximizing Creditor Recoveries: A Mandate Ignored?

With the in-principle agreement,
DCG is now proposing
to pay $604 million to the creditors in two
years’ time instead of
$630 million, the Ad Group further asserted. In addition, instead of releasing $1.1
billion as pledged in the promissory note, DCG is now proposing to pay $830
million in seven years at “sub-market interest rates,” the Ad Hoc Group further
טען.

“At its
essence, [the DCG
in-principle deal] demonstrates that [Genesis] and UCC are unwilling to comply
with their fiduciary obligations to maximize creditor recoveries, and are
instead focused on putting this case behind them,” the Ad Hoc Group noted. “However,
the Ad Hoc Group, which includes dozens of creditors for whom these assets are
critical, does not have such luxury and cannot support the proposed terms of
the Plan Update which permit DCG to walk away untouched and, in fact, paying
less than already committed.”

אם
suggested agreement is finalized in official documents and a Chapter 11 plan is
put forward, the Ad Hoc Group plans to object to Genesis’
אִרְגוּן מִחָדָשׁ.

SEC מאשימה את Citigroup; FMA ו-FCA מזהירים מפני אתרי שיבוט; קרא את קטעי החדשות של היום.

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