- The company is ready to wait to delay the default
- Prior to this, Gemini and other lenders submitted their Genesis reorganization plan.
- The previous one was rejected, although DCG supported it
- The holding has not yet commented on the delay
Last week, Digital Currency Group (DCG) missed paying $630 million due to the Gemini exchange. The company noted that they are ready to “make concessions” in order to at least delay the default.
Recall that after the bankruptcy of Genesis, the “daughter” of DCG, the Winklevoss brothers threatened to file a lawsuit against the holding and its CEO. The stock exchange’s creditors did the same.
They accuse the management of Genesis, DCG and personally Barry Silbert of fraud. Later, the holding offered creditors a plan to reorganize the exchange, but it was rejected.
Gemini insists on its own version. Genesis has a $900 million outstanding loan to the exchange. But ratification new restructuring plan largely depends on DCG’s willingness to negotiate in good faith.
Last week, Genesis lawyers petitioned the court for an extension of time to work on the matter. If approved, the company will have until August 27 to develop and submit a new solution to creditors.
However, the fact that DCG is effectively unable to pay its obligations speaks about the difficult state of the holding. And although Gemini noted that they are ready to make concessions, the delay will be a powerful lever of pressure on the organization.