The preliminary agreement between Genesis and DCG is opposed by some Genesis creditors

2023-08-30 18:13:38

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ChainCatcher news, according to CoinDesk, a preliminary agreement reached between Genesis and its parent company DCG has faced opposition from a group of creditors. The creditors stated in a submitted document that the handling of over $1 billion in outstanding loans is "completely insufficient."

A principal agreement announced by Genesis on Tuesday shows that DCG (also the parent company of CoinDesk) has agreed to repay a portion of its debts, including a $630 million unsecured loan due in May 2023 and an $1.1 billion loan due in 2032.

Creditors oppose the release of DCG and CEO Barry Silbert from future legal claims and threaten to block any final bankruptcy agreement that includes these plans. The document accuses Genesis and a formal committee representing the creditors of agreeing to the DCG deal, which neglects the fiduciary duty to maximize debt recovery.

The identities of these creditors have not been disclosed, but the document states that their total claims against Genesis amount to $2.4 billion, which includes the majority of various claims against Genesis.

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