Wednesday, April 16, 2014

Mt. GOX bankruptcy protection ends

Information regarding the dismissal of the application for commencement of a civil rehabilitation

procedure and the order for provisional administration


MtGox Co., Ltd. applied on February 28, 2014 for commencement of a civil

rehabilitation procedure at the Tokyo District Court (Tokyo District Court 2014 (rehabilitation) no.

12, the “Civil Rehabilitation Procedure”). During the following 1 month and a half, an investigation

has proceeded with regard to the past factual elements related to the disappearance of bitcoins and

missing funds which were the cause of said application, but it is expected that said investigation

will still require some time and at this time, there are no prospects for the restart of the business.

Further, MtGox Co., Ltd. is continuing the negotiations with sponsor candidates but the concrete

selection process has not yet started.



Taking into account this situation and the fact that the drafting of a rehabilitation plan and

its adoption or approval appear difficult, after consultation with the Court and the Supervisor on the

continuation of the procedure, the Tokyo District Court decided today to dismiss the application for

commencement of a civil rehabilitation and at the same time, an order for Provisional

Administration was issued and Attorney-at-law Nobuaki Kobayashi (Supervisor and Examiner

under the Civil Rehabilitation Procedure) was appointed Provisional Administrator. With regard to

the provisional administration order, please refer to the “Announcement of the Order for

Provisional Administration, etc.” prepared by the Provisional Administrator and published on

MtGox Co., Ltd.’s website (https://www.mtgox.com).

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.



Announcement of the Order for Provisional Administration, etc.

On February 28, 2014, MtGox Co., Ltd. (the “Company”) filed an application for commencement of

civil rehabilitation proceedings (minji saisei) at the Tokyo District Court, and the Court issued an

order under which the Company is prohibited from making certain payments, establishing security

over its assets, and disposing of its assets, etc., (an “Order for Prohibition of Payments and Asset

Dispositions, etc.”); an order for comprehensive prohibition; and a supervisory order and

examination order by which I was appointed the supervisor and the examiner.

Today, in circumstances in which it would be difficult for the Company to carry out the civil

rehabilitation proceedings, the Tokyo District Court recognized that it would be difficult for the

Company to carry out the civil rehabilitation proceedings and dismissed the application for the

commencement of the civil rehabilitation proceedings, and at the same time, issued an order for

provisional administration by which I was appointed the provisional administrator. In addition, an

Order for Prohibition of Payments and Asset Dispositions and an order for comprehensive

prohibition, the details of which are the same as the ones issued on February 28, 2014, have also

been issued.

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.

As it is expected that there will likely be inquiries from interested parties, an appendix has been

prepared, in which answers to frequently asked questions are provided.

In addition, the call center, which was formerly set up by the Company, can be contacted at thetelephone number below. However, please note that, at this stage, responses will not be given beyond

the scope of the details described in the appendix.

Telephone Number: +81-3-4588-3922

Working Hours: Monday to Friday 10 a.m. to 5 p.m. (Japan time)

*All inquiries should be made through the telephone number above, and please refrain from making

inquiries to the office of the provisional administrator, whether directly or by email.

Interested parties will be informed of any relevant information, where necessary, through the

appropriate channels, including the Company’s website (https://www.mtgox.com/).

While I appreciate that you may be inconvenienced by these proceedings, in view of the special

circumstances of this matter and the fluid situation, we ask for your kind understanding and

cooperation.



source: https://www.mtgox.com/



Mt. GOX bankruptcy protection ends

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