• Bitvavo, a Dutch crypto trading network, recently announced that they expect to receive at least 80% of the debt owed to them by Digital Currency Group.
• The duo reached an agreement on February 6th with a recovery rate of between 80-100%.
• The repayment will be made in cash, digital currency and convertible preferred equity notes in DCG.
Bitvavo Expected to Receive 80% of Debt from DCG
Bitvavo just 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).
Agreement Reached Between Duo for Repayment
The duo has been working out a deal since January 2021 when DCG proposed making a 70% payment only. However, Bitvavo rejected this proposal and now they have come up with an agreement which includes a recovery rate of between 80-100%. This amount should be paid in different forms including cash, digital currency, and convertible preferred equity notes in DCG.
Next Steps Involved After Agreement Reached
After reaching the agreement between the duo on Feb 6th, there are still more details that need to be worked out. They have agreed upon the Plan Support Agreement (PSA) from this deal which needs approval from the „UCC“ („Unsecured Creditor Committee“). Once approved by UCC it can be presented for ratification before execution process commences and repayment is made.
Genesis Making In-Principle Deal for Restructuring
This news comes after Genesis (a subsidiary of DCG) made an in-principle deal on restructuring with Gemini exchange and other creditors where Genesis could either be sold or its equity turned over to creditors. Many crypto networks suffered last year due to death of Celsius, Terra, and other exchanges resulting in huge losses but now things will hopefully look better with this new agreement.
Bitvavo’s announcement is great news as their optimistic belief that they will receive their settlement is finally becoming true. With many crypto networks suffering losses due to closures last year, this new agreement gives hope that things might get better soon.