Digital Currency Group (DCG) has reached a new repayment agreement with its distressed subsidiary, Genesis Global Holdco LLC, effectively ending Genesis's lawsuit seeking around $620 million from DCG.
According to Sean O'Neal, Genesis's lawyer, the new agreement stipulates that DCG will make approximately $200 million in payments to Genesis in the coming weeks. DCG is required to settle the remaining unpaid amount by April 2024. If DCG defaults, Genesis has the option to attempt to collect all outstanding payments.
The repayment by DCG will be part of Genesis's proposed compensation plan for its creditors, subject to a vote by the creditors. Genesis states that this agreement will avoid months of expensive litigation with its parent company. Sean O'Neal mentioned that the agreement still doesn't resolve other disputes related to DCG in Genesis's bankruptcy resolution.
Genesis filed the lawsuit in September, seeking to recover unpaid loans from its parent company, DCG. According to court documents, DCG has been making payments to Genesis since the lawsuit was filed. However, as of November 28, DCG still owes its subsidiary $324.5 million.