MtGox February Filing Withdrawn Today as Court Appoints Nobuaki Kobayashi Provisional Administrator

According to the latest filings from MtGox, the company has withdrawn its application to rehabilitate itself citing that there are

According to the latest filings from MtGox, the company has withdrawn its application to rehabilitate itself citing that there are no prospects to restart its business, amid ongoing investigations into the cause of its demise.

The news follows a day after DCMagnates reported that Mark Karpeles, CEO of MtGox issued a statement saying he is not yet willing to travel to the U.S. to appear to answer a FinCen subpoena, according to his attorneys, and will seek legal counsel in the U.S. for that matter.

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Although MtGox said it was in talks with sponsor candidates, it stressed that a concrete selection process had not yet started, and that based on the current situation, after consulting with the court, the Tokyo District Court decided today to dismiss its application of the civil rehabilitation filed in February. In addition, an order for a Provisional Administration was issued and Attorney-at-law Nobuaki Kobayashi (Supervisor and Examiner under the Civil Rehabilitation Procedure) was appointed Provisional Administrator, according to the official press release.

The statement concluded, “The dismissal of the application for commencement of a civil rehabilitation procedure will create great inconvenience and concerns to our creditors for which we apologize. MtGox Co., Ltd. intends to fully cooperate with the Provisional Administrator including by handing over to the Provisional Administrator current negotiations with sponsor candidates to maximize the distribution to all creditors following a transfer of the business to a sponsor.”

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Nobuaki Kobayashi, Chairman, Kobayashi & Associates
Nobuaki Kobayashi, Chairman, Kobayashi & Associates

A separate statement issued by Nobuaki Kobayashi, the newly appointment provisional administrator,  said, “Pursuant to these orders, I, as the provisional administrator, will administer the assets of the Company under the supervision of the Tokyo District Court. I will strive to fairly and equitably administer the Company’s assets, both domestically and internationally, by attempting to utilize certain foreign procedures, including a Chapter 15 filing in the United States of America. The future outlook is that, although it is subject to the decision by the Tokyo District Court, it is expected that the commencement of bankruptcy proceedings will be ordered.”

A Q & A session was provided in the filing to help address common inquiries expected following the news, and a telephone number was setup to answer questions although emphasis was made that more details would not be provided beyond what was already provided in the press releases, generally speaking.

For the time being, Mt. Gox users still hoping to recovery monies are greeted with the following statement upon logging into their Mt. Gox account:

 Important announcement to all users confirming their account:
This balance confirmation service is provided on this site only for the convenience of all users.
Please be aware that confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure and note that the balance amounts shown on this site should also not be considered an acknowledgment by MtGox Co., Ltd. of the amount of any rehabilitation claims of users. Rehabilitation claims under a civil rehabilitation procedure become confirmed from a filing which is followed by an investigation procedure. The method for filing claims will be published on this site as soon as we will be in situation to announce it.

A full copy of the Q&A’s added in the announcement can be found on MtGox’s website.

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