DCG: Some Genesis Capital creditors have decided to abandon the previous agreement with Genesis

2023-04-25 20:06:33

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ChainCatcher news, Digital Currency Group (DCG) released a statement regarding the mediation motion submitted against Genesis, stating, "Two months after all parties agreed to the comprehensive settlement submitted by Genesis Capital to the bankruptcy court, some Genesis Capital creditors have rejected it and made new demands. Our understanding is that a portion of the creditors has decided to abandon the previous agreement, and it is unclear whether thousands of individual creditors are aware of this development, but the latest actions will prolong the court's proceedings."

ChainCatcher previously reported that Digital Currency Group (DCG) reached a principle agreement with Genesis creditors (holding or representing over $2 billion in claims) in February, where DCG would exchange $1.1 billion in bonds maturing in 2032 for convertible preferred stock issued by DCG as part of Genesis's bankruptcy plan. DCG would also refinance its existing 2023 term loan with a new senior secured term loan to be paid to creditors in two tranches, totaling approximately $500 million. (source link)

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