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DCG’s Objection: Digital Currency Group (DCG) opposes the settlement between its subsidiary, Genesis, and the New York Attorney General’s (NYAG) Office.
- Payment Basis Discrepancy: DCG argues that the settlement violates the Bankruptcy Code by basing payments to unsecured creditors on asset valuation at the distribution date, not the petition date as mandated.
- Residual Value Concerns: DCG claims the settlement hands over all residual value to NYAG, hindering DCG’s fair participation in the distribution plan for the Debtors’ estates.
- Secured Creditor Status: As the sole equity holder, DCG asserts its secured creditor status and challenges Genesis for not meeting responsibilities to all creditors.
DCG Challenges Settlement Basis
Digital Currency Group (DCG) has lodged a formal objection to the settlement forged by its subsidiary, Genesis, with the New York Attorney General’s (NYAG) Office. The objection revolves around the settlement’s departure from the Bankruptcy Code, specifically concerning payment calculations for unsecured creditors. DCG contends that the current arrangement unjustly favors NYAG and preferred creditors, neglecting DCG’s rightful participation. The objection underscores concerns over the last-minute and confidential nature of the settlement, urging the court to reconsider its approval until these issues are resolved.
Deficiencies in Creditor Responsibilities
DCG emphasizes Genesis’ failure to fulfill responsibilities towards creditors, demanding a demonstration of thorough consideration and negotiation for the estate’s best interests. The objection underscores deficiencies indicating a lack of preparedness against NYAG claims, prompting DCG to request a reevaluation of the settlement’s approval.