• Bitvavo has announced that it expects to receive at least 80% of the debt owed by Digital Currency Group (DCG).
• The two parties have come to an agreement with a recovery rate of between 80-100%.
• DCG will publish details about the in-principle agreement between today and tomorrow.
Bitvavo Announces Expectation of Receiving 80% Debt from DCG
Bitvavo recently released a statement announcing that they expect to receive at least 80% of the debt owed to them by Digital Currency Group (DCG). This debt amounts to around $300 million (280 million euros). Bitvavo rejected an earlier 70% payment offer made by DCG, highlighting that they could still make a full payment. The new agreement, with a recovery rate of 80-100%, was agreed upon between both parties and includes cash, digital currency, and convertible preferred equity notes in DCG.
Details of Agreement Published Soon
The details of this agreement are expected to be published by DCG today or tomorrow. Following this publication, the two will need to work out the details and submit a Plan Support Agreement (PSA) for approval from the Unsecured Creditor Committee. Once approved, it will be presented for ratification in bankruptcy court which will then start the execution process for repayment.
Genesis Makes In-Principle Restructuring Deal
This deal follows after Genesis, a subsidiary of DCG, made an in-principle deal on restructuring with Gemini exchange and other creditors. In this deal, Genesis should be sold or its equity turned over to creditors. This comes as many crypto networks suffered from losses last year due to deaths such as Celsius, Terra, and more.
Payment Due Date Set For February 7 2023
The settlement is scheduled for February 7th 2023 according to reports from Bitvavo’s incoming statement. They believe that all terms necessary for completing this settlement have been agreed upon and are now ready for implementation following approval from all relevant parties involved.
Bitvavo is optimistic that they will receive their debt settlement from Digital Currency Group sometime in the future based on recent developments regarding an in-principle deal established between both parties with an expected recovery rate ranging from 80 – 100%. Details about this agreement are currently being released while further steps are taken towards completion including working out details and receiving approval before presenting it before court for ratification which will open up space for repayment execution process .