{"id":21716,"date":"2023-08-30T14:42:00","date_gmt":"2023-08-30T14:42:00","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/genesis-lenders-call-dcg-agreement-wholly-insufficient\/"},"modified":"2023-08-30T14:42:03","modified_gmt":"2023-08-30T14:42:03","slug":"genesis-lenders-call-dcg-agreement-wholly-insufficient","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/genesis-lenders-call-dcg-agreement-wholly-insufficient\/","title":{"rendered":"Genesis lenders call DCG agreement \u2018wholly insufficient\u2019"},"content":{"rendered":"
<\/p>\n
The lenders of the bankrupt cryptocurrency lender Genesis are not satisfied with the latest in-principle settlement agreement with other parties including the Digital Currency Group (DCG).<\/p>\n
The Ad Hoc Group of Genesis Global Capital (GGC) lenders \u2014 represented by lawyers Brian Rosen and Jordan Sazant \u2014 on Aug. 29 responded to a public bankruptcy plan update, calling the reached in-principle agreement \u201cwholly insufficient.\u201d<\/p>\n
Posted hours before, the public update said that DCG reached an agreement in principle with Genesis\u2019 unsecured creditors (UCC) and debtors, proposing USD equivalent recoveries of 70%\u201390%. The update stressed that neither the Ad Hoc Group nor the Gemini exchange supported the deal in principle described in the plan update.<\/p>\n
\u201cAlthough the mediation has terminated, constructive discussions with the Ad Hoc Group and Gemini regarding the aforementioned agreed-upon deal in principle are ongoing,\u201d the update noted.<\/p>\n
In response, the Ad Hoc Group stressed that it indeed does not support the proposed agreement in principle, calling DCG\u2019s contribution \u201cwholly insufficient to satisfy\u201d the loan amounts. The lenders argued that the debtors and UCC are \u201cunwilling to comply with their fiduciary obligations\u201d to maximize creditor recoveries, arguing that they are instead trying to put the base behind them. The filing added:<\/p>\n
\u201cThe Ad Hoc Group, which includes dozens of creditors for whom these assets are critical, does not have such luxury and cannot support the proposed terms of the plan update which permit DCG to walk away untouched and, in fact, paying less than already committed.\u201d<\/p><\/blockquote>\n
The Genesis lenders also argued that DCG should not be entitled to non-consensual third party releases, which release non-debtor parties from liability to other non-debtor parties without the consent of all potential claimholders.<\/p>\n
Related: <\/em><\/strong>Gemini files brief in lawsuit against SEC, requests to keep it simple<\/em><\/strong><\/p>\n
The Ad Hoc Group argued that the debtors and UCC have agreed to \u201cimproperly cause the release of third party claims\u201d against DCG and its related parties.<\/p>\n
\u201cInstead of receiving $630 million that matured and should have been paid 3 months ago, DCG will only be paying $275 million now and will pay another $328.8 million in another 2 years,\u201d the lenders stated, adding:<\/p>\n
\u201cThere is no conceivable scenario where these contributions can be considered to be a substantial contribution of assets sufficient to merit releases from the estate claims, let alone third-party creditor claims.\u201d<\/p><\/blockquote>\n
Genesis is among cryptocurrency lending firms that were affected by the cryptocurrency winter of 2022. The lender filed for bankruptcy in January 2023 after suspending withdrawals amid a massive liquidity crisis in mid-November 2022. The firm reportedly owed more than $3.5 billion to its top 50 creditors, including firms like Gemini.<\/p>\n
Magazine: <\/em><\/strong>Asia Express: Bitcoin miner gets life in prison, China offers bounties for crypto firms<\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The lenders of the bankrupt cryptocurrency lender Genesis are not satisfied with the latest in-principle settlement agreement with other parties including the Digital Currency Group (DCG). The Ad Hoc Group of Genesis Global Capital (GGC) lenders \u2014 represented by lawyers Brian Rosen and Jordan Sazant \u2014 on Aug. 29 responded to a public bankruptcy plan […]<\/p>\n","protected":false},"author":1,"featured_media":21717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-21716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"\n
Genesis lenders call DCG agreement \u2018wholly insufficient\u2019 | NFT & Crypto News<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\t\n\t\n\t\n