Bankrupt crypto lender Genesis reached an in-principle agreement on a restructuring plan, backed by its parent company Digital Currency Group (DCG) and its creditors, including crypto exchange Gemini.

According to a Tuesday court filing, the proposed plan could result in unsecured creditors recovering 70%-90% in U.S. dollars and 65%-90% in-kind based on the denomination of the digital asset.

The plan was supported by Genesis’ primary creditors, which include Winklevoss-owned crypto exchange Gemini that has sued DCG for its alleged role in orchestrating fraud through its subsidiary Genesis.

As per the terms of the agreement, Gemini has agreed to contribute up to $100 million to compensate users of its Earn program who had their assets frozen when Genesis halted withdrawals last year. Around 340,000 Earn users were impacted by the freeze, with Genesis owing more than $900 million in deposits.                   

“Gemini views this as a critical step toward undoing the harm that Gemini users have suffered over the past few months,” said Gemini attorney Anson Frelinghuysen in a court statement reported by Reuters.

The creditors agreed on new terms for a partial repayment to cover DCG’s liabilities of $630 million in unsecured loans that fell due in May 2023, and the $1.1 billion unsecured promissory note due in 2032. The repayment would take place in two tranches, with the first payment of around $328.8 million holding a 2-year maturity, and the second payment of $830 million holding a 7-year maturity.

DCG has also agreed to pay $275 million over four installments after the date of the partial repayment agreement. The first three installments will be for $75 million respectively, and the last repayment will be for $50 million.