MtGox: Court OK’s civil rehabilitation proceeds; bankruptcy on hold

By Caroline Salls

Pittsburgh, June 22 – MtGox Co., Ltd. announced that the Tokyo District Court issued an order Friday for the beginning of civil rehabilitation proceedings for the company.

The previously ongoing bankruptcy proceedings were stayed by the start of the civil rehabilitation proceedings, according to a news release.

MtGox said an administration order was issued by the Tokyo District Court and Nobuaki Kobayashi has been appointed civil rehabilitation trustee.

Kobayashi said he has the exclusive power and authority to administer and dispose of MtGox’s assets, and he will implement the civil rehabilitation proceedings, including the administration of the company’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision.

The trustee said a meeting for reporting the status of property is Sept. 26, the deadline for filing rehabilitation claims is Oct. 22, the deadline for submission of inventory of assets and balance sheets is Oct. 27, the period for examination of claims runs from Jan. 31, 2019 to Feb. 7, 2019, and the deadline for submission of the company’s proposed rehabilitation plan is Feb. 14, 2019.

Because of the stay of the bankruptcy proceedings, MtGox said its bankruptcy claims filing system has been temporarily suspended.

In a status report, Kobayashi said, unlike in bankruptcy proceedings, in civil rehabilitation proceedings, non-monetary claims are not converted into monetary claims.

As a result, the trustee said claims seeking a refund of bitcoins will also not be converted into monetary claims after the beginning of the civil rehabilitation proceedings.

MtGox is a Tokyo-based online bitcoin exchange operator. The company filed for Chapter 15 bankruptcy on March 9, 2014 in the U.S. Bankruptcy Court for the Northern District of Texas under case number 14-31229.

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