TechFlow reports, according to Bloomberg, Digital Money Group has reached a new repayment agreement with its bankrupt subsidiary Genesis Global Holdco LLC, as part of a deal to end a lawsuit in which Genesis sought approximately $620 million from DCG.
Genesis attorney Sean O'Neal said at a hearing on Tuesday that the deal will provide Genesis with around $200 million in funding over the coming weeks and requires DCG to complete outstanding payments by April 2024. If DCG defaults, Genesis may attempt to collect any unpaid amounts. The proposed repayment agreement aims to resolve the lawsuit Genesis filed in September to recover unpaid loans from its parent company.
Court documents show that since the lawsuit was filed, DCG has been making repayments to Genesis, but as of November 28, DCG still owed Genesis $324.5 million. O'Neal noted that this deal does not resolve other disputes related to DCG concerning Genesis’s bankruptcy plan.
