Genesis, the bankrupt crypto lender, has formed a deal with its parent company, Digital Currency Group (DCG), to put a blanket on the $620 million lawsuit.
In a filing submitted to the New York Bankruptcy Court on November 28, Genesis said that Digital Currency Group has agreed to pay its outstanding loans totaling $324.5 million by April next year.
The proposed agreement will put an end to a lawsuit that Genesis filed against DCG in September, which sought to recover over $620 million in overdue loans.
In August, both companies made a decision to resolve Genesis’s bankruptcy claims, with DCG agreeing to exchange its existing $630 million loans. DCG has made regular payments since then, and the due amount is now around $320 million.
The payment will provide “significant and near-term benefits” to Genesis with it helping in “risk, expense and diversion of resources” required by litigation, according to the filing. The amount will be used by Genesis to pay back its creditors prior to a vote on the plan before it is sent to the bankruptcy judge for approval.
Genesis also sued Gemini recently in order to recover $689 million of its preferential transfers which it could use for creditors’ repayments.
Also Read: Voyager Digital Settles With FTC For $1.65 Billion
