TechFlow reported, according to CoinDesk, that some creditors are opposing the preliminary agreement reached between Genesis and its parent company DCG. In court filings, the creditors stated that over $1 billion in outstanding loans is "wholly insufficient."
On Tuesday, Genesis announced a principle agreement under which DCG (also the parent company of CoinDesk) would repay part of the debt, covering $630 million in unsecured loans due in May 2023 and $1.1 billion in loans maturing in 2032.
The creditors object to provisions granting immunity from future legal claims to DCG and its CEO Barry Silbert, and they threaten to block any final bankruptcy deal containing such terms. The filing alleges that Genesis and the official committee representing creditors agreed to DCG's deal, disregarding their fiduciary duty to maximize creditor recoveries.
While the identities of these creditors remain undisclosed, the documents indicate they hold claims against Genesis totaling up to $2.4 billion, covering various types of claims.
