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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