- A group of Genesis Capital creditors has walked away from a repayment deal with the Digital Currency Group
- DGC, Genesis’ parent company, owes the bankrupt firm $630 million
- DCG has claimed that a subset of creditors reneged on an agreed deal and made new demands
The Digital Currency Group (DCG) has accused a group of Genesis Capital creditors of walking away from a previously agreed bankruptcy deal, prolonging the already complicated process. On Monday, the company took to Twitter to claim that a group of creditors has “reneged and raised all new demands” more than two months after a deal was agreed, and warned that it would have to “weigh any new demands against the concessions we’ve previously made.” This could spell trouble for hundreds of thousands of individual creditors caught up in bankruptcy.
Creditors Demand Mediation
Genesis Capital filed for bankruptcy in January with over $3 billion in liabilities, although it says that DCG, its parent company which has been experiencing its own financial difficulties, owes it $630 million. Talks resulted in what DCG called a “comprehensive settlement”, which a group of Genesis Capital creditors have now apparently disowned, demanding mediation instead:
DCG Statement on Genesis filing Motion for Mediation: pic.twitter.com/pRluUnL49C
— Digital Currency Group (@DCGco) April 25, 2023
DCG said in its statement that it was “difficult to understand the rationale” of the move, adding that “the latest maneuver will prolong the court process.” More troublingly for those creditors who thought the deal was done, DCG has warned that “while we look forward to a constructive mediation process, we will have to weigh any new demands against the concessions we’ve previously made.”
This suggests that the existing deal could be negatively impacted by any potential agreements reached through mediation, and doesn’t bode well for other companies and individuals forced to deal with Genesis Capital over its bankruptcy.
