(Reuters) -Genesis Global and its parent company Digital Currency Group have reached an in-principle agreement with Genesis’ creditors to resolve claims brought during the crypto lender’s bankruptcy, a court filing showed on Tuesday.
The plan could lead to a recovery of about 70%-90% in U.S. dollar equivalent for unsecured creditors and about 65%-90% recovery on an in-kind basis depending on the denomination of the digital assets, according to the filing in the U.S. bankruptcy court in the Southern District Of New York.
The deal includes a payment of about $630 million in unsecured loans due in May 2023 and a $1.1 billion unsecured promissory note due in 2032, along with some other potential claims.
Genesis filed for bankruptcy in January owing at least $3.4 billion to creditors and reached an agreement in principle on a restructuring plan, supported by Digital Currency Group, and its primary creditors, including Gemini, in February.
DCG, owned by Barry Silbert, owns a portfolio of crypto companies in addition to Genesis, including crypto news and events site CoinDesk and New York-based Grayscale, a major digital asset manager.
(Reporting by Lavanya Ahire in Bengaluru; Additional reporting by Akanksha Khushi; Editing by Rashmi Aich and Sohini Goswami)
