According to a document filed with the US bankruptcy court in the Southern District of New York, Digital Currency Group and Genesis Global's creditors have reached an in-principle agreement.
A Good Recovery For Creditors Could Result From The Arrangement
According to a document filed with the US bankruptcy court in the Southern District of New York, Digital Currency Group (DCG) and Genesis Global's creditors have reached an in-principle agreement to settle claims that surfaced during the crypto lender's bankruptcy.
The bankruptcy filings revealed that Genesis owed over $3.5 billion to its top 50 creditors, including Gemini.
A good recovery for creditors could result from the arrangement, with unsecured creditors expected to receive a recovery of between 70% and 90% in US currency equivalent.
The recovery is projected to range between 65% and 90% on an in-kind basis, depending on the denomination of digital assets involved.
The main goal of the arrangement is to settle DCG's current debts, which total $1.1 billion in unsecured promissory notes due in 2032 and $630 million in unsecured loans due in May 2023.
The repayment is anticipated to take place in two tranches: a $328.8 million first repayment with a two-year maturity and a $830 million follow-up repayment with a seven-year maturity.
DCG has also committed to a further payment of $275 million, which will be disbursed through four installments.
