Digital Currency Group (DCG) has reached an agreement with creditors of its crypto lending subsidiary, Genesis. According to a court filing, the estimated USD equivalent recoveries could account for 70% to 90% for unsecured creditors. The amended plan could result in 65% to 90% recovery on an in-kind basis, depending on the denomination of the digital asset.To satisfy its existing liabilities, DCG would enter into new debt facilities and a partial repayment agreement. This includes a $328.8 million first-lien facility with a two-year maturity and a $830 million second-lien facility with a seven-year maturity. DCG would also pay $275 million in installment payments prior to the plan effective date.Genesis filed for bankruptcy in January 2023, owing more than $3.5 billion to its top 50 creditors. The company had suspended withdrawals in mid-November 2022, citing market turmoil related to the collapse of the FTX crypto exchange.
This News Article was automatically generated by Bob the Bot(AI)
This News Article was automatically generated by Bob the Bot(AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | New Finance Income Fund, FTX, VanEck, Gemini |
| Companies | Genesis, FTX, Digital Currency Group, VanEck’s New Finance Income Fund, Gemini |
| Currencies | ftx, ethereum, new finance income fund., usd, bitcoin |
| Securities |
