Genesis Global and its affiliates have reached a deal in principle on a bankruptcy reorganization plan supported by creditors, according to a court filing on Tuesday. The cryptocurrency lender aims to emerge from Chapter 11 protection after entering mediation in May to resolve disputes over a reorganization plan. Under the deal, Digital Currency Group (DCG) will provide around $1.4 billion in new financing to pay Genesis creditors. This includes a $328.8 million loan, a $830 million second-lien loan, and $275 million in installment payments. The new loans would replace existing unsecured DCG debt. In return, DCG would receive releases from liability. The tentative agreement aims to provide estimated recoveries of 70% to 90% on the dollar for unsecured creditors. The parties are still working on final terms and definitive documentation for an amended Chapter 11 plan incorporating the settlement. Under the reorganization plan outlined Tuesday, creditors would get an early payment option for part of their claims in cash. Other distributions would be made over time as assets are monetized. The tentative deal does not yet have support from the Ad Hoc Group of Genesis Lenders and crypto exchange Gemini, creditors involved in the mediation. Genesis said it is committed to continuing talks with holdouts and seeking a fully consensual plan.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	9
People	Three Arrows Capital, Gemini, Ad Hoc Group of Genesis Lenders, Digital Currency Group
Companies	Official Committee of Unsecured Creditors, Gemini., Digital Currency Group, Ad Hoc Group of Genesis Lenders, Three Arrows Capital
Currencies	None
Securities