Digital Currency Group (DCG) and its bankrupt Genesis subsidiaries reached an in principle agreement on terms of a restructuring plan with a group of the firm’s main creditors, according to a person familiar with the situation.

The agreement, which begins to resolve some of the major issues that sent Genesis into Chapter 11 bankruptcy protection, entails winding down the Genesis loan book as well as the sale of the bankrupt Genesis entities, the person said.

The term sheet also involves refinancing the outstanding loans where DCG borrowed $500 million in cash and about $100 million worth of bitcoin (BTC) from Genesis, the person said. Included is “an equitization of the infamous 10-year promissory note that DCG gave Genesis in return for failed hedge fund 3AC claims,” the person said, without providing details of the process. 3AC refers to Three Arrows Capital, a crypto hedge fund that collapsed last year.