According to Foresight News, Digital Currency Group (DCG) has reached a new repayment agreement with its bankrupt subsidiary Genesis, ending a lawsuit in which Genesis sought approximately $620 million from DCG. Genesis' lawyer Sean O'Neal stated during a hearing that the new agreement stipulates DCG will pay Genesis about $200 million in the coming weeks and requires DCG to complete the unpaid amount by April 2024. If DCG defaults, Genesis can attempt to collect all unpaid amounts.
The DCG repayment funds will be part of a compensation plan Genesis proposes to its creditors, which will be submitted for creditor voting. Genesis said the agreement would avoid months of costly litigation with its parent company. However, lawyer Sean O'Neal noted that the agreement has not resolved other disputes related to DCG in Genesis' bankruptcy resolution. Previously, Genesis filed a lawsuit in September against its parent company DCG for unpaid loans. According to court documents, DCG has been making payments to Genesis since the lawsuit was filed, but as of November 28, DCG still owed its subsidiary $324.5 million.
