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Digital Currency Group’s Objection:
- DCG, the parent company of bankrupt lender Genesis, objects to the proposed bankruptcy plan.
- The plan allegedly violates the Bankruptcy Code by overpaying customers.
- This favors a select group of creditors and strips DCG of economic and governance rights.
Overpayments and Violation of Bankruptcy Code:
- DCG argues that the plan pays unsecured creditors more than their legal entitlements.
- This violates the Bankruptcy Code’s requirements for confirming a cramdown plan.
- The plan allows certain unsecured claims to grow exponentially with the value of Genesis’ assets, unfairly favoring senior creditors.
Clandestinity and Lack of Good faith:
- DCG alleges that the bankruptcy plan was developed in a “clandestinity process” excluding Digital Currency Group.
- The UCC and Ad hoc Group collaborated with Genesis to create a plan that favors general unsecured creditors and disregards the interests of the company’s stakeholders.
- This violates the Debtor’s Fudiciary Duties and demonstrates a lack of good faith.
Unrecognized Post-Petiton Rates and Diminished Interests:
- The plan includes post-petiton interest rates not recognized by the court, further diminishing DCG’s interests.
- Restrictions on DCG’s rights as the company’s owner further disadvantage the company.
Call for Rejection and Fair Resolution:
- DCG urges the court to rejects the proposed plan as it violates the Bankruptcy Code and was not proposed in good faith.
- DCG requests a fair and equitable resolution that adheres to the requirements of the Bankruptcy Code.