Digital Currency Group (DCG) has fully lifted its short-term debt to the bankrupt Genesis subsidiary, which is a significant achievement in the case that continues.
This debt repayment makes DCG’s total creditors’ liabilities at around $ 1 billion of which nearly $700 million was given to Genesis.
Before that, in September of the same year, Genesis sued DCG to repay millions due on outstanding loans which showed financial woes for both companies. However, they settled in November whereby DCG promised to pay $200 million followed by the full repayment from April 1st.
This settlement means that Genesis will come under the tax protection of DCG henceforth, and this may spare millions in future taxes.
Both companies were optimistic about the future, DCG with “the next chapter” and Genesis on bankruptcy proceedings.
Even with all these, there are still unanswered questions as to the long-term health of both DCG and Genesis.
The cryptocurrency market crash has severely affected their financials, and handling the bankruptcy of Genesis will be a difficult dilemma.
Nevertheless, DCG’s effort to repay debts shows its determination to address financial problems and effectively support subsidiaries.
This step, in addition to the protection provided by the tax agreement, could open up an opportunity for both companies to overcome this period of uncertainty even stronger.
Also Read: Ottawa Police Caution Residents About Cryptocurrency Job Scam
