Digital Currency Group (DCG) has reached an in-principle deal with Genesis creditors to resolve the claims brought up in Genesis’ bankruptcy , according to a court filing on Tuesday.
The plan could result in the recoveries of 70%- 90% in USD equivalent for unsecured creditors and 65%- 90% recovery on an in-kind basis depending on the denomination of the digital asset. All the estimated recoveries are subject to market pricing and definitive documentation.
The lending arm of Genesis halted withdrawals in November of last year in the wake of the FTX exchange’s collapse, with Genesis filing for bankruptcy protection at the start of this year. Last month, a DCG letter to shareholders said it was close to reaching an agreement in principle to resolve the claims in the case.
DCG is also the parent company of CoinDesk.
To satisfy DCG’s existing liabilities of approximately $630 million in unsecured loans due in May 2023 and $1.1 billion under an unsecured promissory note due in 2032, a new partial repayment agreement was agreed upon with two tranches – approximately $328.8 million with a two-year maturity and $830 million with a 7-year maturity.
DCG would also pay $275 million in four installment payments after the date of the partial repayment agreement on account of the May 2023 maturities ($630 million in unsecured loans).
