TechFlow news: DCG has reached a preliminary agreement with Genesis' creditors to resolve claims arising from Genesis' bankruptcy.
According to court filings on Tuesday, the plan could enable unsecured creditors to recover 70%-90% of their claims in equivalent U.S. dollars, and 65%-90% through in-kind collateral distributions based on the face value of digital assets. All estimated recovery amounts are subject to market pricing and final documentation.
Last month, in a letter to shareholders, DCG stated it was close to finalizing a preliminary agreement to resolve claims in this case. DCG is also the parent company of CoinDesk. To repay its existing liabilities—including approximately $630 million in unsecured loans due in May 2023 and $1.1 billion in unsecured notes due in 2032—a new partial repayment agreement has been reached, split into two tranches: a two-year tranche of about $328.8 million and a seven-year tranche of $830 million.
DCG will also make four installment payments following the date of the partial repayment agreement to settle the $630 million in unsecured loans due in May 2023.
