Digital Currency Group (DCG) has reached an in-principle deal with Genesis creditors to resolve the claims brought up in Genesis' bankruptcy, according to a court filing on Tuesday.

The plan could result in the recoveries of 70%-90% in USD equivalent for unsecured creditors and 65%-90% recovery on an in-kind basis depending on the denomination of the digital asset. All the estimated recoveries are subject to market pricing and definitive documentation.

The lending arm of Genesis halted withdrawals in November of last year in the wake of FTX's collapse, and filed for bankruptcy protection at the start of 2023. Last month, DCG said in a letter to shareholders it was close to reaching an in-principle agreement to resolve the claims.

DCG is also the parent company of CoinDesk.

To satisfy DCG's existing liabilities of approximately $630 million in unsecured loans due in May 2023 and $1.1 billion under an unsecured promissory note due in 2032, a new partial repayment agreement was agreed on. The repayment would be done in two tranches – approximately $328.8 million with a two-year maturity and $830 million with a 7-year maturity.

DCG would also pay $275 million in four installments after the date of the partial repayment agreement on account of the May 2023 maturities.

Genesis Global Holdco, LLC and its subsidiaries filed for bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York in January 2023. The filings revealed Genesis owed over $3.5 billion to its top 50 creditors, including crypto exchange Gemini, trading giant Cumberland, Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund.

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