The Rehabilitation Trustee filed a motion to seek an extension of the submission deadline of rehabilitation plan at the Tokyo District Court, and, on October 25, 2019, the Tokyo District Court issued an order to extend the deadline for a rehabilitation plan from October 28, 2019 to March 31, 2020.

For details, please check the information that the Rehabilitation Trustee disclose in the URL below.

クリックして20190425_announcement_en.pdfにアクセス

A continuation date for a creditors’ meeting was convened on March 20, 2019 for the purpose of reporting on the status of property as part of the civil rehabilitation proceedings.

For your reference, the questions asked by some of the creditors, and the answers given by the trustee in the meeting, are as follows:

Q1-1    CoinLab, Inc. has filed 1,690 billion yen in claims, but there appears to be an opinion that this is an unwarranted claim that would delay the civil rehabilitation proceedings.  What is the opinion of the trustee?

A1-1    The court will decide in the Assessment Decisions on Rehabilitation Claims whether the contents of the claims of CoinLab, Inc. are justified.  I will make efforts to expedite the civil rehabilitation proceedings.

Q1-2    The trustee does not approve the voting rights of CoinLab, Inc., but does the order of the Assessment Decisions on Rehabilitation Claim affect this?

A1-2    If CoinLab, Inc. exercises voting rights while there is a conflict over the filed claims, the court will ultimately determine the amount of voting rights.  We recognize that the amount of voting rights of CoinLab, Inc. is huge, therefore this is an important issue.

Q1-3    The deadline for submission of the Rehabilitation Plan is April 26, 2019, but how long does it actually take?

A1-3    It would be difficult to submit it by April 26, 2019, and it is not clear when it can be submitted. It is influenced by circumstances such as how to deal with the claims of CoinLab, Inc., the claims of creditors who did not approve, how long the Assessment Decisions on Rehabilitation Claims will take, and what to do after the procedure.

Q1-4    Is there a means of exercising voting rights by posting to the Office of the Rehabilitation Trustee, or an online system?

A1-4    This is under consideration.  I built the system, therefore I intend to use it to provide creditors with more convenience.  In any case, this will be decided in consultation with the court.

Q1-5    There are many creditors who are not native speakers of English.  Please consider drafting a report in English that is easy to understand.

A1-5    Under Japanese law, it is sufficient for the report to be prepared in Japanese, but the report is also prepared in English for creditors outside Japan.  As I recognize the room for improvement, I will consider taking measures to draft it in more understandable English.

Q2-1    Regarding Attachment 1 of the report, “Summary Table Regarding Approval and Disapproval of Non-Exchange-Related Rehabilitation Claims,” are the claims organized in units of currency?  I understand that the claims of CoinLab, Inc., do not constitute approval in full.

A2-1       Your understand is correct.

Q2-2    What are the prospects for the trustee on the Assessment Decisions on Rehabilitation Claims of CoinLab, Inc.?

A2-2    As this seems to be based on the Assessment Decisions on Bankruptcy Claims of the bankruptcy proceedings, the Assessment Decisions on Rehabilitation Claims will proceed promptly.  However, if CoinLab, Inc.is dissatisfied with the order of the procedure, it will go to a lawsuit, therefore in this case it does not assume how long it will take.

Q3-1    According to the report in Section 2.1.(3), the Users who filed proofs of rehabilitation claims by posting them to the Office of the Rehabilitation Trustee will be informed of the results of the Rehabilitation Trustee’ approval or disapproval via e-mail.  When will this e-mail be sent ?

A3-1       I am currently preparing it, but I think it will not take much time.

Q3-2       Will the e-mail be sent to the creditor or the agent of that creditor ?

A3-2    I will send the e-mail to the contact e-mail address stated in the proof of rehabilitation claim forms.

Q3-3    Can a creditor who has filed a rehabilitation claim by posting to the Office of Rehabilitation Trustee not see the full text of the Statement of Approval or Disapproval on the Internet?

A3-3    I have considered this.  However, as it is difficult to build a system that makes it impossible for anyone other than the creditors to view it, it is not to be released on the Internet.  Please be informed that it will be possible to inspect and copy it in the court room.

Q4          What is the policy to deal with creditors who did not submit their proof of claims?

A4          This is under consideration.

Q5       According to Report 1.2, “the cryptocurrencies split from BTC of the Rehabilitation Debtor belong to the estate of the Rehabilitation Debtor, and will be a source of distribution to rehabilitation creditors,, will the cryptocurrencies split from BCH also be a source of distribution?

A5          If there is market value, it will be used as a source.

Q6-1    Does the trustee have anything to do with the policy of the Rehabilitation Plans aside from the claims in the Assessment Decisions on Rehabilitation Claims?  For example, whether there is a business transfer or dividend?

A6-1    This is under consideration. However, it is difficult to transfer a business, etc., as it constitutes the understandings of the trustee, and it is a key point as to whether the payment is based solely on money or on the payment by BTC.  If I pay by BTC, I can not use the blockchain to pay.  One method is where BTC is transferred to an exchange, the creditors are users of the exchange, and BTC can be delivered to the user’s account at the exchange.

Q6-2       If the trustee will sell BTC in the future, please disclose the information thereon.

A6-2       If it is necessary to sell BTC, I will discuss it with the court and consider.

In the middle of the meeting, the trustee asked the creditors whether the trustee should continue holding the BTC and making payments in BTC. Many creditors answered that they are in favor of holding the BTC and payment of BTC.

The next creditors’ meeting will be held on October 1, 2019. However, the creditors’ vote on whether or not to approve or disapprove the rehabilitation plan (which is yet to be proposed, announced or disclosed) might NOT yet be conducted at the said next meeting.

The Tokyo District Court issued an order to change the deadline for the Rehabilitation Trustee to submit statements of approval or disapproval, among other matters. The Rehabilitation Trustee explained that the Court issued the order because he has received a large number of proofs of rehabilitation claims, and requires a significant amount of time to correct any deficiencies in MTGOX’s Bitcoin exchange users’ filed claims

Please be advised that the schedule was changed as follows:

1. Exchange-Related Rehabilitation Claims

(1) Submission deadline for Rehabilitation Trustee’s statements of approval or disapproval:

January 24, 2019 → March 15, 2019

(2) Period to examine proofs of rehabilitation claims:

From January 31, 2019 to March 22, 2019 → From March 22, 2019 to March 29, 2019

2. Rehabilitation Claims other than Exchange-Related Rehabilitation Claims
   

(1) Submission deadline for Rehabilitation Trustee’s statements of approval or disapproval:

January 24, 2019 [No change]

(2) Period to examine proofs of rehabilitation claims:

From January 31, 2019 to February 7, 2019 [No change]

3. Submission deadline for proposed rehabilitation plan
   

February 14, 2019 → April 26, 2019

For details, please see the URL below.

English: https://www.mtgox.com/img/pdf/20190124_announcement_en.pdf

Japanese: https://www.mtgox.com/img/pdf/20190124_announcement_ja.pdf

On September 26, 2018, a creditors’ meeting was convened for the purpose of reporting on the status of property as part of the civil rehabilitation proceedings.

For your reference, the questions asked by some of the creditors and the answers given by the trustee in the meeting are as follows:

Q1-1: Does the trustee have any knowledge about the situation of the overseas assets of MTGOX?

A1-1: I do not have any knowledge about the situation.

Q1-2: Has the trustee gained any information from the US Department of Justice on the disappearance of BTC?

A1-2: I only know the information that is available on the internet.

Q1-3: How can the creditors who have filed proof of Rehabilitation Claims by off-line confirm the status of their claims?

A1-3: I will reply to the e-mail stating that the claim has been received. However, it is expected that it will take time to reply because a large amount of documents have been received.  In the future, we will prepare a communications system and will be able to respond quickly.

Q1-4: Can rehabilitation creditors receive payment in BTC based on the rehabilitation plan instead of payment in Japanese yen (“JPY”)?

A1-4: Whether rehabilitation creditors receive payment in BTC or JPY is yet to be determined because this depends on the contents of the rehabilitation plan (which is still not formulated or drafted). However, at this time, I will take into account that payment in BTC includes the problems of the risk of a BTC crash, security of rehabilitation creditors and requiring user registration of the exchange.

Q2: In the bankruptcy proceedings, although it was filed in the name of the company, it turned out to be an individual account. In the rehabilitation proceedings, can I file under the individual name?

A2: Because this is a specific question based on a creditor’s specific situation, I cannot answer it here at this meeting. As a general rule, I will approve or reject a claim based on the customer information possessed by MTGOX, so if the creditors can prove that the person who made the claim is a creditor, we will approve it.

Q3: Can rehabilitation creditors receive interim payment?

A3: I can pay rehabilitation creditors only after the rehabilitation claims are determined and the rehabilitation plan is approved by creditors. However, I would like to consider including a provision regarding interim payment in the rehabilitation plan.

Q4-1: Can the trustee get support from Kraken in regard to measures against security problems for payments?

A4-1: We received support from Kraken in bankruptcy proceedings in the past, so we would like to receive support in these civil rehabilitation proceedings too. On the other hand, there are other exchanges apart from Kraken.  I will consider residential housing areas and usability of creditors.

Q4-2: What kind of means are there for exercising voting rights in regard to the rehabilitation plan?

A4-2: I would like to consider means in which as many creditors as possible can vote within the legally possible range.

Q5-1: To what exchanges did the trustee sellBTC?

A5-1: Due to security concerns, I am not able to disclose which exchanges sold BTC.

Q5-2: Does the trustee plan to sell the BTC in the future?

A5-2: This is also related to whether or not the repayments will be made with BTC. There is also the risk of a crash due to holding the BTC for a long time, so I would like to discuss this with the court / Examiners.

Q6-1: Is there a possibility that MTGOX will rebuild the exchange?

A6-1: I do not consider that MTGOX will restart the business.

Q6-2: What exchange provided advice to the trustee regarding the sale of BTC?

A6-2: Due to security concerns, the trustee cannot disclose specific names.

Q7-1: Are creditors who have not filed a claim in the bankruptcy proceedings or rehabilitation proceedings also eligible for payment?

A7-1: Because there is a system called “self-approved claim” under civil rehabilitation law, customers understood to be creditors of MTGOX will be eligible for payment even if they do not file a claim.

Q7-2: Are there opportunities for creditors to express their opinions on the proposed rehabilitation plan?

A7-2: I will consider opinions.

Q7-3: According to the balance sheet, “about 69.7 billion yen” is recorded as “cash and deposit”, and is this amount also included in trust assets of 15.8 billion yen?

A7-3: This amount is included.

Q8-1: According to the third page of the English Report under paragraph 1 of Article 125 of the Civil Rehabilitation Act, it is stated that “… I understand that the cryptocurrencies split from BTC of the Rehabilitation Debtor belong to the Rehabilitation Debtor”, does the trustee intend to distribute the cryptocurrencies split from BTC to shareholders?

A8-1: This is property belonging to the rehabilitation debtor and becomes a source of payment to creditors.

Q8-2: Similarly, “… … the list of Assets and the Balance Sheet do not show BTC or cryptocurrencies split from BTC held by the Rehabilitation Debtor”, but shouldn’t this be shown?

A8-2: This is just a problem with the method described in the table. The trustee will consider the described method.

Q9-1: Is the purpose of establishing a trust to preferentially secure the interests of monetary creditors?

A9-1: Unless securing the interests of monetary creditors, bankruptcy proceedings are more advantageous for monetary creditors than civil rehabilitation proceedings. Then, since doubts arise when starting civil rehabilitation proceedings, securing the interests of monetary creditors is necessary.

Q9-2: I do not want the trustee to sell the BTC. There is also the risk of a crash, but the value of BTC may rise as well.

A9-2: I understand your opinion, but there are also creditors who want me to sell the BTC.

At the end of the meeting, the trustee asked the creditors whether the BTC should be sold early or whether the trustee should continue holding the BTC and making payments in BTC. Most creditors answered that they are in favor of holding the BTC and payment of BTC.

The next creditors’ meeting will be held on March 20, 2019. However, the creditors’ vote on whether or not to approve or disapprove the rehabilitation plan (which is yet to be proposed, announced or disclosed) might NOT yet be conducted at the said next meeting.

The revised basic policy for the rehabilitation plan that we are considering as of August 1, 2018 is as stated below. We received various comments on the previous version of the basic policy from a large number of creditors (including Mt Gox Legal which has been administrated by Mr. Andy Pag) and we have made revisions based on these comments.  The revisions are written in red.

The rehabilitation plan outline we have prepared is merely a proposal as of this point in time. We would like to hear your opinions, as creditors, and make revisions to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent possible.

Your opinions can be submitted by commenting on this article, sending e-mails to the relevant e-mail address, or sending letters. You can also use the comment box on the website.  We look forward to hearing your opinions.  Please provide your name and filing number so that we are able to identify you as a creditor.

[Basic Policy for the Rehabilitation Plan]

1. The rehabilitation plan should be simple and the implementation thereof should have a high degree of certainty.

Although we requested of the court that the proceedings be progressed in accordance with the standard schedule of civil rehabilitation proceedings, the commencement order has set the deadline for submitting a civil rehabilitation plan on February 14, 2019, which is several months behind the standard schedule.

In order to make the first payment as soon as possible, the rehabilitation plan should be simple. If the rehabilitation plan is complicated, interest adjustment among the interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern.  Also, a complicated rehabilitation plan would be difficult to understand, and unfriendly to many creditors.  We are of the opinion that it is important to make the rehabilitation plan as simple as possible, obtain approval early, and make payments to creditors as soon as possible.

In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should contain a plan for implementation which is both highly certain and realistic, considering rehabilitation proceedings practices in Japan.

2. No distribution will be made to shareholders.

Mt. Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt. Gox should be distributed to creditors and not to shareholders.

3. Claims for return of bitcoins (BTC) will be repaid in BTC and BCH in general.

In general, we consider it appropriate to make payments to creditors who had been depositing BTC (BTC creditors) with Mt. Gox, in BTC and BCH instead of cash.

This is because making payments to BTC creditors in BTC and BCH is the most simple and efficient way, minimizing transaction costs such as bank fees (this is the very advantage of BTC).  Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC and BCH for fiat currency, which may result in the decline of the price of BTC, etc.  Further, as the price of BTC and BCH fluctuates rapidly, it is difficult to determine when to sell BTC and BCH.

We think it esirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily.

In addition, Mt. Gox holds a lot of cash through the sales of BTC and BCH and the remaining cash amount after the repayment to the monetary creditors should be paid to BTC creditors in cash without exchange to BTC.  In this case, we think it desirable that the cash be sent to the accounts of the exchanges, as chosen by the creditors.

Moreover, with regard to altcoins (cryptocurrency except for BTC and BCH), the number of exchanges which deal with altcoin is limited. It is unrealistic to repay BTC creditors in altcoin and therefore altcoin should be exchanged to cash and paid to creditors . However, there are no exchanges which deal with all types of altcoins, there is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins.  Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters.

4．         The full payment to the monetary creditors will be made.

Our plan will ensure the monetary creditors receive full payment of the amount which they are to be paid in the bankruptcy proceedings. Specifically, they will receive full repayment to the degree which has been approved in the bankruptcy proceedings. The amount which may be paid to BTC creditors from the estate of Mt. Gox available for payment decreases by implementing this policy. However, we will maintain this policy because, in the Examiner’s report, the Examiner considers that the civil rehabilitation of Mt. Gox shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings (in other words, the discontinuation of the bankruptcy proceedings), that ensure the benefits of the monetary creditors in the bankruptcy proceedings of Mt. Gox.

We think it desirable that the cash be sent to the accounts of the exchanges, as chosen by the creditors.

5. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan (according to the schedule written in the commencement order, this will be May or June of 2019).

Creditors have been waiting for payment to be made for as long as 4 years since Mt. Gox was bankrupted. Needless to say, payment to creditors should be made as soon as possible.

We are of the opinion that most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives currently held by Mt. Gox, should be paid to creditors at the time of the first payment.

6. If there are any residual assets, or new assets are found, additional payment will be made. Additional investigation for lost BTC will be implemented.

At the time of the first payment, the existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt. Gox until the amount of those disputed claims is fixed. In this case, we consider that those assets so reserved should be paid to creditors as additional payment.

Conversely, we think that payment should not be reserved until all of the assets/debts are fixed. Early payment should be realized by paying most of the assets that Mt. Gox has at hand to creditors as the first payment, as soon as possible, and then paying those assets/debts that are yet to be fixed, as additional payment.

With regard to additional payment, we think that a scheme should also be considered to realize additional payment promptly, under which additional payment should be made by fixing the amounts of the non-fixed assets/debts by transferring them to third parties, instead of waiting for all such amounts to be fixed.

Additionally, the investigation and recovery of lost BTC is a concern for a lot of creditors and the additional investigation should be carried out at the expense of Mt. Gox for the sake of uncovering the truth and increasing the estate and therefore increasing repayment to creditors.

7. No sponsor will be selected in principle except where it is apparent that such a selection would be advantageous to creditors.

There may be an opinion that we should find a company to support Mt. Gox financially and commercially (“sponsor”). However, Mt. Gox has already suspended its business, and does not require a sponsor to supplement its creditworthiness or to continue its operations.  It is not necessarily a requirement under the rehabilitation law of Japan to appoint a sponsor, although it is common, and we are of the opinion that a rehabilitation plan can be approved by the courts and creditors without a sponsor in this case.  In addition, a certain period of time would be required to find a sponsor, and a proxy fight may occur if there is more than one sponsor candidate.  Such a situation may become an obstacle to the achievement of the purpose we consider most important, namely, early payment to creditors.  We do not intend to completely reject the option of finding a sponsor; however, we are of the opinion that a sponsor should not be selected except where it is apparent that such a selection would be advantageous to creditors and would not be an obstacle to early payment.

8. The introduction of systems which allow creditors to obtain their trading records, etc. and other measures will be taken by Mt. Gox.

For creditors, the accessibility to their trading record is indispensable for the approval or disapproval of civil rehabilitation plan. We are going to ask the trustee to take measures such as the introduction of systems which allow us to obtain the trading records.

We are currently considering the basic policy for the rehabilitation plan that  is as stated below.  The rehabilitation plan outline we have prepared is merely a proposal as of this point in time.  We would like to hear your opinions, as creditors, and revise this basic policy to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent.

Your opinions are accepted by making comments on this article, sending e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), )  or sending letters.  We look forward to hearing your opinions.  Please provide your name and filing number so that we can identify you as a creditor.  You can also use the comment box on the website at the bottom of this page.

[Basic Policy for the Rehabilitation Plan]

1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.
2. No distribution will be made to shareholders.
3. Distribution of assets to creditors will be made in kind, meaning for creditor bitcoin (BTC) claims, payment will be made in BTC and its derivatives (including but not limited BCH).
4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan (according to the standard schedule, approximately 5 months after the commencement of rehabilitation proceedings).

　 5.  The full payment to the monetary creditors will be made.

6. If there are any residual assets, or new assets are found, additional payment will be made.
7. No sponsor will be selected in principle, except where it is apparent that such selection is advantageous to creditors.

[Concept of the Basic Policy]

1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.

In order to make the first payment as soon as possible, the rehabilitation plan should be simple.  If the rehabilitation plan is complicated, interest adjustment among interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern.  Also, a complicated rehabilitation plan is difficult to understand, and is not friendly to many creditors.  We are of the opinion that it is important to make the rehabilitation plan as simple as possible, approve it at an early timing, and make payment to creditors as soon as possible.

In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should have content of implementation which is highly certain and which is realistic, considering rehabilitation proceedings practices in Japan.

2. No distribution will be made to shareholders.

Mt.Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt.Gox should be distributed to creditors and not to shareholders.

3. Payment for bitcoins (BTC) will be made in BTC and its derivatives (BCH, etc.).

We consider it appropriate to make payment to creditors who had been depositing BTC (BTC creditors) with Mt.Gox, in BTC and its derivatives (BCH, etc.), instead of cash.

This is because making payment to BTC creditors in BTC, etc. is the most simple and efficient way and transaction costs such as bank fees can be minimized (this is the very advantage of BTC). Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC, etc. for fiat currency, which may result in decline of the price of BTC, etc.  Further, as the price of BTC, etc. fluctuates rapidly, it is difficult to determine when to sell BTC, etc.

4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan.

Creditors have been waiting for payment to be made for as long as 4 years since Mt.Gox was bankrupted. Needless to say, payment to creditors should be made as soon as possible.

We are of the opinion that most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives, if any, currently held by Mt.Gox, should be paid to creditors at the time of the first payment.

     5．The full payment to the monetary creditors will be made.

In the Examiner’s report, the Examiner considers that the civil rehabilitation of MT.GOX shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings (in other words, the discontinuation of the bankruptcy proceedings), that ensure the benefits of the bankruptcy creditors (especially those having monetary claims corresponding to bankruptcy claims) who filed proofs of claims in the bankruptcy proceedings of MT.GOX.

To convert from the bankruptcy proceedings to the civil rehabilitation proceedings, we believe that it is the best for us to allow the full payment to the monetary creditors in the civil rehabilitation proceedings.  The total amounts of the monetary claims are much smaller than the amounts of BTC claims, so the full payment to the monetary creditors does not have significant impact on the distribution to BTC creditors.  Therefore, the full payment to the monetary creditors can be implemented in the plan.

6. If there are any residual assets, or new assets are found, additional payment will be made.

At the time of the first payment, existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt.Gox until the amount of those disputed claims is fixed. In such case, we consider that those assets so reserved should be paid to creditors as additional payment.

Conversely, we think that payment should not be reserved until all of the assets/debts are fixed. Early payment should be realized by paying most of the assets that Mt.Gox has at hand to creditors as the first payment, as soon as possible, and then paying those assets/debts that are yet to be fixed, as additional payment.

Also, with regard to additional payment, we think that a scheme should be considered to realize additional payment at an early timing, under which additional payment should be made by fixing the amounts of the non-fixed assets/debts by transferring them to third parties, instead of waiting for all of such amounts to be fixed.

7. No sponsor will be selected in principle except where it is apparent that such selection is advantageous to creditors.

There may be an opinion that we should find a company that supports financially and commercially Mt.Gox (“sponsor”). However, Mt.Gox has already suspended its business, and it is not in a situation requiring a sponsor to supplement its creditworthiness or to continue its operations.  It is not necessarily a requirement under the rehabilitation law in Japan to appoint a sponsor, although it is common, and we are of the opinion that a rehabilitation plan can be approved by the courts and creditors without a sponsor in this case.  In addition, a certain period of time would be required to find a sponsor, and a proxy fight may occur if there is more than one sponsor candidate.  Such a situation may become an obstacle to the achievement of our purpose which we consider the most important, namely, early payment to creditors.  We do not intend to completely deny finding a sponsor; however, we are of the opinion that a sponsor should not be selected except where it is apparent that such selection is advantageous to creditors and will not be an obstacle to early payment.

1. What is a Rehabilitation Plan?

A rehabilitation plan stipulates the amount and manner of payment to be made rehabilitation creditors, as well as the provisions and the like to amend all or part of creditors’ rights. The plan  will be effective if it is approved with the consent of a majority of creditors and finalized following the relevant court’s approval and confirmation.  To approve a rehabilitation plan, (i) 1/2 or more of the total amount represented by voting rights (requirement for the number of voting rights); and (ii) a majority of voting right holders who attended the creditors’ meeting or who voted in writing (requirement for the number of voting right holders), must be fulfilled.

Accordingly, when, how, and the amount creditors will be paid will be determined depending on the content of the rehabilitation plan, and in order to realize the content of the rehabilitation plan, creditors are required to consent to the plan.

2. Purpose of Preparing a Rehabilitation Plan

In rehabilitation proceedings, a rehabilitation plan that reflects creditors’ opinions should be prepared and implemented. In the present case, however, there are at least 25,000 or more creditors, each of whom may have different opinions; it is therefore not realistic to completely meet the requests of all creditors; thus, the rehabilitation plan must be of the content that meets the greatest common interests of creditors.  That being said, we believe that creditors’ opinions with regard to basic matters are consistent.

As the rehabilitation plan will be primarily prepared by the bankruptcy trustee, we first intend to propose to the bankruptcy trustee a plan that is considered to be desirable for creditors. In order to certainly and promptly realize the rehabilitation plan, it must also be prepared taking into consideration laws and practices concerning rehabilitation proceedings in Japan.

Also, the bankruptcy trustee might prepare a rehabilitation plan the content of which is not acceptable for creditors. In such a case, creditors can submit a rehabilitation plan prepared on their own.  Whether the plan prepared by the bankruptcy trustee, or that prepared by creditors, will be adopted, will be determined by a majority vote of creditors at the creditors’ meeting, after the court’s examination.

The rehabilitation plan will ultimately be determined by a majority voting at the creditors’ meeting, and the right to determine it is left to creditors. We are of the stance to have the rehabilitation plan, which is to be submitted to the creditors’ meeting, reflect creditors’ opinions to the fullest extent, so that their interests will be protected.  Accordingly, creditors will not be bound by the outline of the rehabilitation plan proposed in the “Basic Policy for the Rehabilitation Plan” which will be released by us on this website; the ultimate decision is left to creditors, to be made by a voting at the creditors’ meeting.

Considering practices of rehabilitation proceedings in Japan, we will strive to submit to the creditors’ meeting a rehabilitation plan which incorporates creditor opinions to the fullest extent, and as a part of our activities, we intend to negotiate with the bankruptcy trustee.

The expected schedule going forward for the Civil Rehabilitation Proceedings is as follows:
(1) Meeting for reporting the status of property and submission deadline for a report under Article 125 of the Civil Rehabilitation Act:
September 26, 2018

(2) Deadline for Filing proof of rehabilitation claims:
October 22, 2018

(3) Submission deadline for inventory of assets and balance sheets:
October 27, 2018

(4) Submission deadline for statement of approval or disapproval:
January 24, 2019

(5) Period to examine Proofs of rehabilitation claims:
From January 31, 2019, to February 7, 2019

(6) Submission deadline for proposed rehabilitation plan:
February 14, 2019

Today, on June 22, 2018, the Tokyo District Court ordered commencement of civil rehabilitation proceedings regarding Mt. Gox.   Accordingly, enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt.Gox in civil rehabilitation proceedings.  This is the creditors’ victory.  Please see “https://www.mtgox.com/ ” for the trustee’s website.

However, this victory has not been realized yet.  The victory will come to creditors when Mt. Gox makes payment to creditors and  creditors actually receive such payment.

To that end, a rehabilitation plan to certainly and promptly realize creditors’ rights should be prepared, approved at the creditors’ meeting, and approved by the court.

A rehabilitation plan, which provides creditors rights in the proceedings,  will be primarily prepared by the trustee; therefore, creditors’ opinions will not always be reflected to the rehabilitation plan prepared by the trustee.

We would like to reflect creditors’ opinions to the rehabilitation plan by proposing our opinions or plan to the trustee.  Under Jananese civil rehabilitation act, a creditor is entitled to submit his or her plan if  the court permits.

Therefore, we are now working to prepare for the separate article entitled, “Outline of Our Rehabilitation Plan.”   We would like to hear creditors’ opinions on the outline.  Creditors will send us e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), or letters.