If Genesis Bankrupts, DCG Needs To Immediately Pay $350 Million Loan To Eldridge
Key Points:
- If Genesis bankrupt, DCG will immediately be due for a loan of $350 million words.
- November 2021, DCG raises $600 million from Eldridge and a group of other investors.
- Eldridge is working to get his investment back.
According to the Financial Times, Digital Currency Group is trying to raise capital to avoid the Genesis bankruptcy, in part to avoid having to immediately repay a loan from the investment firm of American tycoon Todd Boehly.
Boehly raised a loan for DCG last November through its own investment group, Eldridge, which included a $600 million loan from Eldridge and a group of other investors.
If Genesis goes bankrupt, the $350 million owed from the loan will be due immediately, the source said. It is understood that a senior secured term loan is ranked higher than other loans and has a certain priority, meaning that the loan must be repaid first in all cases.
Eldridge believes that Genesis’ halting withdrawals means the company Barry Silbert’s is unable to pay its debts and is therefore in default. However, Eldridge wants to avoid losing its investment and is working with DCG to help them raise capital and pay Genesis investors, clients and customers.
DCG is looking to pay off Genesis’ $1.5 billion debt, but the loan it received from Eldridge is now said to be safe. It reassured its investors by saying its relationship with Eldridge is “completely independent of Genesis’ restructuring strategy and unrelated to any Genesis outcome”.
As mentioned in previous Coincu News articles, on-chain data shows that some cryptocurrencies related to DCG are selling off on a large scale and the community casts doubt that the company Barry Silbert’s is behind this to save the current situation.
Gemini is also one of the victims strongly affected if Genesis goes bankrupt. On December 17, the CEO of Gemini announced on his personal Twitter account that their company is working with the financial advisors of the Creditors Committee to find a solution to the liquidity problems of Genesis and DCG.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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If Genesis Bankrupts, DCG Needs To Immediately Pay $350 Million Loan To Eldridge
Key Points:
- If Genesis bankrupt, DCG will immediately be due for a loan of $350 million words.
- November 2021, DCG raises $600 million from Eldridge and a group of other investors.
- Eldridge is working to get his investment back.
According to the Financial Times, Digital Currency Group is trying to raise capital to avoid the Genesis bankruptcy, in part to avoid having to immediately repay a loan from the investment firm of American tycoon Todd Boehly.
Boehly raised a loan for DCG last November through its own investment group, Eldridge, which included a $600 million loan from Eldridge and a group of other investors.
If Genesis goes bankrupt, the $350 million owed from the loan will be due immediately, the source said. It is understood that a senior secured term loan is ranked higher than other loans and has a certain priority, meaning that the loan must be repaid first in all cases.
Eldridge believes that Genesis’ halting withdrawals means the company Barry Silbert’s is unable to pay its debts and is therefore in default. However, Eldridge wants to avoid losing its investment and is working with DCG to help them raise capital and pay Genesis investors, clients and customers.
DCG is looking to pay off Genesis’ $1.5 billion debt, but the loan it received from Eldridge is now said to be safe. It reassured its investors by saying its relationship with Eldridge is “completely independent of Genesis’ restructuring strategy and unrelated to any Genesis outcome”.
As mentioned in previous Coincu News articles, on-chain data shows that some cryptocurrencies related to DCG are selling off on a large scale and the community casts doubt that the company Barry Silbert’s is behind this to save the current situation.
Gemini is also one of the victims strongly affected if Genesis goes bankrupt. On December 17, the CEO of Gemini announced on his personal Twitter account that their company is working with the financial advisors of the Creditors Committee to find a solution to the liquidity problems of Genesis and DCG.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
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