The Unsecured Creditors Committee (UCC) in Genesis' bankruptcy proceedings has put forth a proposed deal with Genesis parent DCG that takes a soft line. An incredibly soft line.
As a brief catch-up, DCG subsidiary Genesis filed for bankruptcy protection in January 2023. Genesis was owed about US$1.7 billion by DCG, which also owned the company. About one third of that money was due in May 2023 and DCG did not pay. The creditors put Genesis into bankruptcy and allegations started flying that Genesis was still controlled by DCG so the UCC was a bit of a sham affair.
That is the back story. Now we have a proposed deal between DCG – which, again, also owns bankrupt Genesis – and the UCC. DCG failed to pay (i.e. defaulted) on a US$630 million payment in May 2023. At that point Genesis has the ability to put DCG into bankruptcy (we are going to ignore grace periods and the like to keep this simple).
