Digital Currency Group (DCG) Reached an Agreement with Genesis' Creditors
Digital Currency Group (DCG) has agreed to settle claims of its subsidiary Genesis. According to a court filing released on 29 August, Digital Currency Group may pay 70-90% of the funds to Genesis creditors.
Genesis filed for Chapter 11 bankruptcy in January 2023 when it faced liquidity problems amid the FTX collapse in November 2022. The company's problems caused unrest in the crypto community.
Genesis has $630 million in unsecured loan commitments due May 2023 and a $1.1 billion unsecured promissory note due 2032.
Through the agreement, Digital Currency Group (DCG) plans to pay a total of $275 million in four tranches on top of its existing debt facilities. In addition, the company will enter into new debt facilities and the partial repayment agreement.
Source & Copyright: Digital Currency Group (Twitter)
Genesis is indebted to 50 major companies, including Gemini. This cryptocurrency exchange suffered the most from Genesis' bankruptcy, following its representatives sued the parent company. It is unknown whether their dispute will be settled, given Digital Currency Group's recent actions.
This agreement could also be a bridge to stabilise the cryptocurrency market.
The statement concludes that an agreement in principle will be submitted to the bankruptcy court for final approval in connection with the confirmation of the Chapter 11 plan.
Cameron Winklevoss Tyler Winklevoss
