• Bitvavo, a Dutch crypto trading network, announced that they have reached an in-principle deal with DCG to receive at least 80% of the debt owed to them.
• The settlement is expected to be made after developing the agreement between DCG and its creditors.
• In the agreement, the recovered amount should be paid in different forms, including cash, digital currency, and convertible preferred equity notes in Digital Currency Group.
Bitvavo Expects Payment from Digital Currency Group
Bitvavo, a famous Dutch crypto trading network, recently released a statement announcing that they expect to receive at least 80% of the debt owed to them by Digital Currency Group (DCG). According to reports, DCG currently owes Bitvavo around $300 million (280 million euros).
In-principle Agreement Reached
An in-principle agreement was reached between the duo for a recovery rate of between 80-100%. Earlier this year in January, it was reported that DCG proposed making only 70% payment to Bitvavo’s debt. However, this proposal was rejected as it was believed that DCG could make a full payment.
Details of Agreement
The new agreement states that the recovered amount should be paid in different forms such as cash, digital currency and convertible preferred equity notes in DCG. Details about the satisfactory in-principle agreement will be revealed today or tomorrow by DCG. The next phase involves working out details and signing off on them under Chapter 11 proceedings which will continue for weeks ahead.
Plan Support Agreement
Once complete, both parties will then work out Plan Support Agreement (PSA) from this deal which must be approved by UCC (“Unsecured Creditor Committee”) before being presented to bankruptcy court for ratification and execution of repayment process can commence.
Genesis Restructuring Deal
The deal with Bitvavo follows Genesis’ restructuring deal with Gemini exchange and other creditors where Genesis must either be sold or its equity turned over to creditors last year due to deaths of Celsius, Terra and others