Trustee says MtGox’s bankruptcy proceedings to continue as usual despite civil rehabilitation petition

Maria Nikolova

Nobuaki Kobayashi confirmed that some of the creditors of the bankrupt entity, MtGox Co., Ltd., had filed a petition for civil rehabilitation proceedings with regard to MtGox with the Tokyo District Court.

Nobuaki Kobayashi, the bankruptcy trustee of ill-fated Bitcoin exchange MtGox Co., Ltd., today provided an update on the proceedings, as some of the creditors had filed a civil rehabilitation petition.

He confirmed that on November 24, 2017, some of the creditors of the bankrupt entity, MtGox Co., Ltd., filed a petition for civil rehabilitation proceedings with regard to MtGox with the Tokyo District Court. On the same day, the court issued an examination order, which appoints an examiner to check whether there are reasons to dismiss the Petition.

At the present moment, the examiner appointed by the court is investigating whether there are reasons to dismiss the Petition, and hereafter, based on the results of this investigation, the court will decide whether to commence civil rehabilitation proceedings. Hence, the filing of the Petition itself does not mean that civil rehabilitation proceedings have started.

The bankruptcy trustee says:

“Unless the court makes a new decision, the bankruptcy proceedings will proceed as before and, as the bankruptcy trustee of MTGOX, I will continue to have the right to administer and dispose of the bankruptcy estate as before.”

In the documents distributed at the ninth creditors’ meeting, held on September 27, 2017, in Tokyo, the trustee said that he secured an account balance of JPY 1,213,801,185, that is, an increase of approximately JPY 183,000,000 from the time of the 8th creditors’ meeting. The amount of BTC managed by the bankruptcy estate as of September 21, 2017, is 202,185.36428254 BTC.

The trustee confirmed that he is still conducting investigations into whether any BTC or money in other currencies that were possessed by or under the control of the bankrupt entity have disappeared, and if they have, the events leading to such disappearance. Parts of the work have been delegated to Deloitte Touche Tohmatsu LLC (and its affiliates) and ReEx Accounting Firm, with the assistance of supporting company Payward.

The trustee said that after all bankruptcy claims have been accepted or rejected, he is willing to proceed to the distribution process as soon as possible. However, the detailed schedule thereof will inevitably be affected, inter alia, by each creditor’s response to the acceptance or rejection of his or her claim.

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