Digital Currency Group (DCG) is looking to refinance outstanding obligations with its bankrupt lending division Genesis and raise growth capital, the crypto conglomerate said on Tuesday.
Outstanding obligations can take the form of loans, receivables or any payments due between the two entities. CoinDesk reported in February that DCG, which is CoinDesk’s parent company, may have borrowed around $500 million in cash and as much as $100 million worth of bitcoin (BTC) from Genesis.
The move is meant to provide “further financial flexibility” as DCG engages with stakeholders in Genesis Capital’s bankruptcy proceedings, DCG said.
DCG was hit hard by the crypto market collapse last year, with its subsidiary Genesis ending up in bankruptcy court.
Parties to Genesis’ bankruptcy proceedings have agreed to a 30-day mediation period to iron out the terms and conditions of DCG’s contribution to the reorganization plan. DCG has said the mediation request reflected several creditors backing out of a previous agreement.
“We are committed to reaching a fair outcome for all and look forward to a productive resolution during this mediation period,” the notice said.
CoinDesk has reached out to DCG for further comment.
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