Digital Currency Group (DCG), a prominent cryptocurrency industry venture capital firm, has reached a preliminary agreement with creditors of its cryptocurrency lending subsidiary, Genesis. 
According to a court document released on August 29, if the revised plan is sanctioned, unsecured creditors could potentially recover between 70% and 90% of the equivalent United States dollar value. 
The revised plan also offers the possibility of recovering 65% to 90% on an in-kind basis, dependent on the specific digital asset denomination. 
In a statement to Cointelegraph, DCG expressed satisfaction in reaching a preliminary agreement with both Genesis and the Unsecured Creditors Committee. 
This agreement establishes the groundwork for a comprehensive resolution of the claims within the Genesis Chapter 11 Cases, aiming to provide significant recovery opportunities for creditors. 
The formalized agreement will be documented and presented to the bankruptcy court for ultimate approval, aligned with the confirmation of a chapter 11 plan. 
READ MORE: <a href="https://www.cryptointelligence.co.uk/former-ftx-ceo-sam-bankman-frieds-legal-team-deems-trial-preparations-inadequate/" rel="noopener noreferrer nofollow">Former FTX CEO Sam Bankman-Fried’s Legal Team Deems Trial Preparations Inadequate</a> 
In order to address its existing obligations to debtors, which encompass a $630 million obligation in unsecured loans maturing in May 2023, as well as a $1.1 billion commitment under an unsecured promissory note due in 2032, DCG is planning to enter into novel debt facilities and a partial repayment arrangement. 
These liabilities encompass a first-lien facility with a two-year maturity totaling $328.8 million, along with a second-lien facility with a seven-year maturity totaling $830 million. 
Additionally, DCG has agreed to make $275 million in payments in installments before the effective date of the plan, in accordance with the terms of the partial repayment agreement outlined in the filing. 
Genesis, along with numerous other crypto lending entities, faced the impact of the extensive bear market in 2022, resulting in the filing for bankruptcy in January 2023. 
The company found itself indebted to its top 50 creditors with a sum exceeding $3.5 billion, which included notable firms like Gemini and VanEck’s New Finance Income Fund. 
In prior reports, Genesis suspended withdrawal operations in mid-November 2022, attributing the decision to unparalleled market turbulence caused by the collapse of the FTX crypto exchange. 
The company cited an unexpectedly high volume of withdrawals that surpassed its available liquidity as a consequence of this incident. 
Other Stories: 
<a href="https://www.cryptointelligence.co.uk/hashdex-challenges-status-quo-with-innovative-approach-in-pursuit-of-bitcoin-etf-approval/" rel="noopener noreferrer nofollow">Hashdex Challenges Status Quo with Innovative Approach in Pursuit of Bitcoin ETF Approval</a> 
<a href="https://www.cryptointelligence.co.uk/three-former-team-members-accused-of-16-million-theft-from-pepecoin-pepe-multisig-wallet/" rel="noopener noreferrer nofollow">Three Former Team Members Accused of $16 Million Theft from Pepecoin (PEPE) Multisig Wallet</a> 
<a href="https://www.cryptointelligence.co.uk/casino-gender-which-games-do-men-and-women-prefer/" rel="noopener noreferrer nofollow">Casino Gender: Which Games Do Men and Women Prefer?</a>

Digital Currency Group Reaches Agreement with Genesis Creditors for Potential Recovery

Crypto Intelligence

Andre artikler udgivet 1. sep. 2023

Kava Chain Now Live on Fireblocks, Opening Cosmos DeFi to Institutional Investors

BTC Records a 10-Week Low

HYTOPIA Worlds: The Gaming NFT with An Immersive Experience

Whopping 1.5 Billion XRP Moved by Ripple and Anon Wallets as September Begins

Bitcoin ETF "Approval Is Inevitable": Ex-US SEC Chair Jay Clayton

SEC Delays Ruling on Spot Bitcoin ETF From BlackRock & Others

Join our free newsletter for daily crypto updates!