• Bitvavo, a famous Dutch crypto trading network, has announced that they expect to receive at least 80% of the debt owed to them by Digital Currency Group (DCG).
• DCG currently owes Bitvavo around $300 million (280 million euros) as part of an in-principle deal between DCG and its creditors.
• The recovery rate from this agreement is between 80-100%, with repayment expected to be made in forms such as cash, digital currency, and convertible preferred equity notes.

Bitvavo Announces Agreement with Digital Currency Group

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). According to incoming reports, DCG currently owes Bitvavo around $300 million (280 million euros), with repayment expected in forms such as cash, digital currency, and convertible preferred equity notes.

Details of In-Principle Agreement

Earlier this year in January, DCG proposed making a 70% payment towards Bitvavo’s debt; however the exchange rejected this proposal and highlighted that DCG could still make a full payment. Since then the duo have been attempting to figure out a better deal, with an agreement finally reached on Feb 6th for an expected recovery rate of between 80-100%.

Plan Support Agreement Submission

The next phase involves working out details before signing and concluding the agreement under Chapter 11 proceedings over the next few weeks. Following this process there will then be submission of a Plan Support Agreement (PSA) to the “UCC” (“Unsecured Creditor Committee”) for approval. Approval by UCC will mean that PSA is ready for presentation in front of bankruptcy court for ratification. Once ratified execution process will commence and repayment will be made.

Genesis Restructuring Deal

Bitvavo’s deal comes after DCG’s subsidiary Genesis made an in-principle deal on restructuring with Gemini exchange and other creditors; whereby either Genesis is sold or its equity turned over to creditors. This follows last year’s deaths of Celsius, Terra, and many other crypto networks due to market volatility during 2020.

Conclusion

This new agreement between Bitvavo and DCGroup signals hope for many crypto networks who suffered through 2020 due to market volatility leading up their respective deaths which included Celsius & Terra amongst others. With ratification from UCC expected shortly it won’t be too long until Bitvavo can look forward to receiving repayment from their debtors at Digital Currency Group.