The restructuring plans between Digital Currency Group (DCG), Genesis Global, and creditors are underway as court approval is pending. Genesis creditors can expect to receive a minimum of 80% of their funds back, with the exact amount to be determined by the convertible preferred equity note and the final sale prices of DCG/Genesis assets.

DCG has agreed to transfer its equity stake in Genesis Global Trading to Genesis Global Holdco, the holding company for Genesis. This transaction would bring all Genesis-related entities under the same roof. As part of the agreement, DCG will exchange a $1.1 billion promissory note due in 2032 for convertible preferred stock and refinance its $526 million term loans payable to creditors. Additionally, crypto exchange Gemini will contribute $100 million for its Gemini Earn users.

Genesis Global Trading, once all transactions are completed and court approval is obtained, will be put up for sale. The latest update from a Genesis creditor, Donut, stated that the recovery rate for creditors is approximately $0.80 per dollar deposited, with a path to $1.00. The final amount depends on various factors including the equity note, realized liquidation prices, and other unknown costs associated with the bankruptcy proceedings.

Genesis is currently undergoing Chapter 11 bankruptcy proceedings following a liquidity crisis in November. However, Genesis Global Trading was not included in the filing and will continue its client trading operations. Genesis lawyers are seeking a quick resolution to creditor disputes and are optimistic about the company coming out of Chapter 11 by late May.

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