Donut Expects Debt Recovery Rate At Genesis Will Reach More Than 80%

Key Points:

As updated in an earlier Coincu News article, today, the Gemini cryptocurrency company, a partner in the Gemini Earn product and a significant creditor of Genesis, has contributed $100 million cash to the recovery plan corporate recovery and restructuring.

Cryptocurrency savings company Donut has announced that it expects its DCG/Genesis debt recovery rate to be around 80%, and the excess depends on convertible preferred bonds, based on “Price liquidation” of the assets of DCG/Genesi, taking into account the unspecified costs associated with the remainder of this bankruptcy.

Update:

The Steering Committee in partnership with Genesis, DCG, and our respective advisors, has reached an in-principle agreement on the terms of a restructuring plan.

Learn more in our Market Update: https://t.co/NHNTEZUOdC

— Donut ? (@donutapp) February 6, 2023

This plan has a recovery rate of about $0.80 for every dollar deposited, with a path to $1.00. The scope depends on the convertible preferred equity bond, the exercised liquidation price, and consideration of the unknown costs associated with the remainder of this bankruptcy.

For members of the Savings plan, this will mark a net recovery range of 81-100%, and for members of the Build plan, a net recovery range of 83-100% per dollar deposit. The illustrated recovery rates represent the information provided by Genesis and have been analyzed by Houlihan Lokey. However, they can change matters.

The plan still needs approval from the Bankruptcy Court. As all debtors and many creditors, including DCG and Genesis, participated in the formation of this plan and agreed to its economics.

Although not selected for the Unsecured Creditors Committee, Donut is confident that those set will fulfill their role in maximizing recovery for creditors.

It is known that Genesis is the primary lending partner of Donut. Due to the suspension of Genesis conversion, Donut cannot withdraw user funds from Genesis. It follows news on January 12 that Genesis owes creditors more than $3 billion, including money owed to Donut’s Saving product customers.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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