![]() ![]() According to a shareholder letter that was shared with Forbes, chief financial officer Michael Kraines stepped down in April and the company engaged Heidrick & Struggles for a new CFO search. “I expect DCG will not be able to make the payment unless they obtain refinancing immediately,” says Ahluwalia. Houlihan has not responded to Forbes' request for comment.Ī DCG spokesperson said the company has no further comments beyond what has been shared on its website. That deal would have offered creditors about 80 cents on the dollar, according to a Genesis' creditor, which cited an analysis by investment bank Houlihan Lokey HLI. DCG risks “defaulting on its obligation” if Genesis cannot work out an arrangement by then, according to Gemini, a crypto exchange that had been a partner of the DCG unit and is now working with creditors.Īn earlier arrangement with Genesis creditors fell apart after some of them “reneged and raised new demands,” DCG posted on its website. According to court filings, DCG owes Genesis approximately $630 million due next week and risks a default if it does not make a payment or restructure its debt before May 9. The matter complicates Genesis’ bankruptcy case, including the disposition of a loan it made to its parent, crypto conglomerate Digital Currency Group, or DCG, controlled by billionaire Barry SIlbert. Lawyers for FTX have not returned a request for comment. “Genesis remains focused on our restructuring process, through which we are working to reach a consensual resolution that maximizes value for all Genesis clients and stakeholders,” the company said in a statement to Forbes. Lawyers for the current management of FTX alleged that Genesis “was one of the main feeder of funds for FTX and instrumental to its fraudulent business model.” At one point in 2021, the lender had over $8 billion of outstanding loans to FTX affiliate Alameda, according to the filings. “Which ones are more legitimate to be made whole is yet another question.” “Since this proceeding is mainly between two entities which have filed for Chapter 11 bankruptcy, ultimately the funds will be taken from one set of debtors to benefit another set of debtors,” wrote Fannizadeh. ![]()
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