U.S. MtGox bankruptcy filing approved to clear way for Japan proceedings

U.S. Bankruptcy Judge Stacey G. Jernigan has approved MtGox’s bid for bankruptcy protection. The case was filed back in February at the

U.S. Bankruptcy Judge Stacey G. Jernigan has approved MtGox’s bid for bankruptcy protection. The case was filed back in February at the U.S. Bankruptcy Court, Northern District of Texas.

The approval paves the way for the liquidation proceedings in Japan, which also seek to investigate the coins’ disappearance, exert efforts toward their recovery and oversee assets in the U.S.

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Judge Jernigan said that she has “ample legal authority” to accept the U.S. filing and recognize the Japan case as the main foreign proceeding. She added that “this is really going to be all about the customers”, in reference to the recovery efforts.

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The U.S. case was a Chapter 15 Bankruptcy, which protects U.S. assets of foreign companies restructuring or liquidating abroad and enforces rulings from those proceedings.

Former CEO Mark Karpeles has not been present for the court proceedings, despite Jernigan declaring in April, “If he avails himself of this court, my God, he is going to get himself over here.” A month later, representatives of Nobuaki Kobayashi, the Japan lawyer appointed as trustee for the liquidation proceedings in Japan, requested approval so that they can move forward.

The Japan proceedings would also need to approve alternative plans, such as that proposed by Sunlot Holdings who want to buy MtGox for one bitcoin and engage in efforts to recover the lost coins.

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