As previously reported, Bitvavo is actively working with other creditors and advisors to negotiate with DCG to recover the outstanding amount (197 million). News has come out that Bitvavo has reached an agreement that has been documented in a “terms sheet” that will be published later today or tomorrow.
Speed up the Process of Repaying
This proposed principle agreement marks the end of an intensive negotiation period and brings the process into a new phase where details will be further worked out. This method of working speeds up the repayment process.
Recovery Rate Expectation
A proposal for the first approximately 70% repayment within an acceptable timeframe for Bitvavo has been discussed since the beginning of this year. This new agreement has been held regarding the remaining 30%. Meaning what the “recovery rate” will be and in which it will be paid back. That is digital currency, cash or DCG preferred shares.
In the coming weeks, this agreement will be further developed into a “PSA” (“Plan Support Agreement”). This PSA will be submitted for approval to the “UCC” (“Unsecured Creditor Committee”), a recently established representative body of all creditors. Which Bitvavo is a member of. If the UCC agrees, it must be confirmed by the bankruptcy judge before implementation and repayment can commence. The Termsheet will be published today or tomorrow on the Bitvavo Blog.
Although the principle agreement presented today is not yet formalized and may still be subject to change, Bitvavo remains optimistic because the majority of creditors, as well as DCG and Genesis, were involved in the formation of this agreementon the the financial settlement of creditors.
Customers are safe
As previously stated, the current situation with DCG has no impact on Bitvavo’s customers, its platform and its services. Bitvavo guarantees the outstanding amount, and has the financial resources to do so, and therefore controls the risk of its customers.