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Genesis Global Holdco’s parent company, Digital Currency Group (DCG), has reached an in-principle deal with the creditors to resolve the claims of the bankrupt crypto lender.

According to the court filing on August 29, the approval of the plan could yield unsecured creditors’ recoveries ranging from 70% to 90% in USD equivalent and recovery rates of 65% to 90% in kind, depending on the denomination of the digital asset.

The filing also notes that Genesis’ liabilities include $630 million in unsecured loans due in May 2023 and $1.1 billion under an unsecured promissory note due in 2032.
As such, DCG could potentially engage in the new debt arrangements as well as the partial repayment arrangement in order to meet its current obligations to creditors.
These debts include a $328.8 million first-lien facility set to mature in two years and an $830 million second-lien facility with a maturity period of seven years.
The Barry Silbert-led conglomerate also plans to pay $275 million across four installments.
Genesis filed for Chapter 11 bankruptcy protection at the Southern District of New York (SDNY) court in January this year, two months after suspending withdrawals citing unprecedented market turmoil following FTX’s implosion.
The once-prominent crypto lender owed over $3.5 billion to its top 50 creditors, including Winklovoss-twins’ Gemini, MoonAlpha Finance, and VanEck’s New Finance Income Fund, among others.
The development comes a little over a week after Genesis and FTX reached an agreement on the $175 million claim.

The post DCG and Genesis Forge Agreement for Up to 90% Recoveries for Creditors: Report appeared first on CryptoPotato.

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