Informed sources: If Genesis goes bankrupt, DCG needs to repay $350 million loan to Eldridge immediately

Digital Currency Group (DCG) is trying to raise funds to avoid bankruptcy of its Genesis subsidiary, in part to avoid immediate repayments of loans from U.S. financier Todd Boehly, who in November last year through his own investment group, reported the Financial Times, citing sources. Eldridge conducted a debt financing for DCG that included a $600 million loan from Eldridge and a group of other investors. If Genesis goes bankrupt, the $350 million still outstanding on the loan would be due immediately, and the senior secured term loan ranks above other debt and has some seniority, meaning that in any case, the people familiar with the matter said. must be repaid first. Eldridge believes that Genesis' suspension of withdrawals means that DCG is unable to repay its debts and is therefore in default. However, Eldridge is eager to avoid losing its investment and is working with DCG to help it raise funds and pay Genesis investors and customers.