Summary:
Digital Currency Group (DCG) has reached an in-principle deal with Genesis creditors to resolve their claims in Genesis’ bankruptcy. The plan could result in recoveries of 70% to 90% in USD equivalent for unsecured creditors and 65% to 90% recovery on an in-kind basis, depending on the denomination of the digital asset. DCG, the parent company of CoinDesk, will partially repay its existing liabilities through a new repayment agreement. Genesis Global Holdco, LLC filed for bankruptcy with the U.S. Bankruptcy Court, revealing debts of over $3.5 billion to its top creditors.
Key Points:
– DCG has reached an in-principle deal with Genesis creditors to resolve their claims in Genesis’ bankruptcy.
– The plan could result in recoveries of 70% to 90% in USD equivalent for unsecured creditors and 65% to 90% recovery on an in-kind basis.
– The repayment of DCG’s liabilities will be done in two tranches with different maturities.
– DCG will also make additional payments on account of the May 2023 maturities.
– Genesis Global Holdco, LLC filed for bankruptcy with debts of over $3.5 billion to its top creditors.
Hot Take:
The in-principle deal between DCG and Genesis creditors offers hope for the recovery of funds for unsecured creditors. This agreement, if finalized, could provide significant returns, ranging from 70% to 90% of the debts owed. It is a positive development in the crypto industry, showcasing efforts to address bankruptcy situations and protect the interests of creditors.
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