MtGox Gets More Time as Court Approves Civil Rehabilitation Request

When entering its bankruptcy case, MtGox filed for a Procedure of Civil Rehabilitation with the Tokyo District Court.  Under terms

When entering its bankruptcy case, MtGox filed for a Procedure of Civil Rehabilitation with the Tokyo District Court.  Under terms of the filing, MtGox assets would more or less be frozen, with the company being given time to assess its business before a liquidation would take place.  In MtGox’s case, the company stated that they discovered customer cash missing from accounts at their banking partners as well as the loss of bitcoins which they sought additional time to investigate. 

Updating customers today, MtGox posted results of their request, with the court approving the procedure of civil rehabilitation and stating:

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No forced execution or preliminary attachment or disposition shall be made by a rehabilitation creditor on the basis of a rehabilitation debt with regard to the properties of the rehabilitation debtor during the period until a decision shall be made with regard to the application for commencement of civil rehabilitation.

Per terms of the court answer, MtGox will now be given additional time to investigate the location of its customer cash and bitcoins, before a forced liquidation would take place.  As per their initial filing with the court, MtGox may also use the current period to create and bring forward to its creditors a business proposal of how they could remain an ongoing entity, while providing benefits to creditors. Such a plan would  possibly entail the providing of equity in the firm to its debtors or creating a proposal of repayment based on future profits.

 

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