DCG Nears 90% Recovery in Genesis Creditors’ Resolution

Key Points:

• DCG’s agreement proposes 70%-90% USD and 65%-90% in-kind recovery for unsecured creditors.
• DCG strategically addresses $630M debt due in 2023 and $1.1B promissory notes maturing in 2032.
• Agreement showcases commitment to financial resolution and equitable settlements.

Digital Money Group (DCG) has taken a significant step towards resolving the complexities of Genesis’ bankruptcy proceedings, as revealed by court documents filed on Tuesday.

An initial agreement in principle has been reached between DCG and Genesis’ creditors, signifying a pivotal development in the ongoing legal saga.

Central to this agreement is the innovative program designed to address the concerns of unsecured creditors. Based on the face value of the digital asset, the program extends a generous offer, promising unsecured creditors a substantial recovery ranging between 70% to 90% in USD equivalence and 65% to 90% in recovery-in-kind. However, the actual recoveries are contingent upon market prices and the finalization of documentation.

The agreement also encompasses a strategic approach to addressing DCG’s pressing financial obligations. With around $630 million in unsecured debt maturing in May 2023 and an additional $1.1 billion in unsecured promissory notes set to mature in 2032, DCG has embraced a multi-faceted repayment strategy.

Divided into two distinct installments, the plan involves a 2-year loan totaling approximately $328.8 million, followed by a 7-year loan amounting to $830 million. Furthermore, DCG has committed to a series of payments, totaling $275 million, distributed across four installments. This approach not only addresses the impending repayment obligations but also takes into account the partial repayment agreement scheduled for May 2023.

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