Court filings reveal that Digital Currency Group (DCG) has reached an in-principle deal with Genesis creditors to resolve the claims brought up in the crypto lender's bankruptcy.
A bankruptcy. We've been following very closely here. Digital Currency Group has reached an in principle deal with Genesis creditors to resolve the claims brought up in Genesis bankruptcy. Aage, you've been following the story closely. Uh you wrote an article that we're referring to this morning here, talk to me about what's going on. Yeah, this happened late last night, us hours and early morning uh India and Asia hours. The Digital Currency Group, as you said, has reached an in in principle deal with Genesis creditors to resolve the bankruptcy. Uh What we do know at this point in time is that it is contingent on several uh you know, you know, aspects of the deal falling through legally in front of court, both parties have to agree and could result in the recoveries of 70% to 90% in US C equivalent for unsecured credits and 65% to 90% on an in kind basis depending of course, on the denomination of the digital asset and market prices and just definitive documentation, which is all the documents following place. Now take you through what had happened in the past. Of course, we did know that we had, Ian Allison, our reporter, our colleague had broken the story earlier about how there was an invincible deal a few months back that we were aware of. And now we know that through this particular court filing, it has been made very clear in terms of what are the conditions of that now just to kind of refresh the memory of anyone who's watching DC G's existing liability of approximately about 630 million in unsecured loans due in May 2023. That's what this is about and that will now be repaid. As we understand in two tranches, approximately 328 million with a two year majority and 830 million with a seven year majority. So this was for the 1.1 billion under an unsecured promissory note due are due in 2032. So these all of these tranche of payments have to kind of fall through. We also know that DC G will be paying 275 million in four installments after the date of the partial repayment agreement on account of that May 2023 majority that I was talking about earlier. The 630. We should also of course mention that DC G is the company of Coin Desk.