DCG Reaches Agreement in Principle with Genesis Creditors to Exchange $1.1 Billion Note for Preferred Stock

DCG has reached an agreement in principle with Genesis's ad hoc group of creditors to exchange $1.1 billion note for preferred stock.

It is report that DCG would exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’s Chapter 11 plan. DCG would also refinance its existing 2023 term loans through a new, junior secured term loan in two tranches made payable to creditors in the aggregate total value of approximately $500 million.

In addition, DCG will also contribute its equity interest in Genesis Global Trading to Genesis Global Holdco, bringing all Genesis entities under the same holding company.

As part of the agreement, Gemini has agreed to contribute up to $100 million in additional funds to Earn users.