Commencement of Civil Rehabilitation Proceedings of Mt.Gox

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.

 

再生手続開始のお知らせ

 本日(2018年6月22日)、Mt.Goxについて東京地方裁判所は再生手続の開始決定を発令しました。このことは、Mt.Goxの破産管財人のウェブサイトにも掲載されています。https://www.mtgox.com/

 これにより、破産手続ではMt.Goxの株主に分配されることになっていた多額の資産が、債権者の皆様に還元されることになります。これは、債権者の皆様の勝利といえます。 

 もっとも、この勝利は、まだ実現しているものではありません。債権者の皆様の勝利は、Mt.Goxからの弁済がなされ手元に届いた時に、本当に訪れることになります。

 そのためには、再生手続において、債権者の皆様の権利を確実かつ迅速に実現するための再生計画案が策定され、これが債権者集会において可決され、裁判所によって認可される必要があります。

 現在、我々が考えている再生計画案の骨子について、近々、「再生計画案の骨子」という記事を掲載する予定ですので、ご覧ください。再生計画案の骨子に対する債権者の皆様のご意見は、「再生計画案の骨子」の記事のコメント欄への記述、メールアドレスへのメールの送信、手紙のいずれの方法によっても受け付ける予定です。もっとも、再生計画案は、一義的には再生手続における管財人が作成するものであり、管財人作成の再生計画案に、債権者の意見がそのまま反映されるものではありません。また、我々が作成した再生計画案は、現時点の案にすぎませんので、債権者の皆様の意見を伺い、できる限り債権者の意向を反映した計画案にしていくことを想定しています。

 

Submission of a Motion to the Court (2)

We submitted a motion to the Tokyo District Court again on March 28, 2018, urging the court to promptly issue a decision to commence rehabilitation proceedings and convert the bankruptcy proceedings to rehabilitation proceedings.

We have submitted a motion to the court on March 28, 2018 (for details please refer to the “Submission of a Motion to the Court” posted on March 28, 2018 ), but the court have not yet issued a decision to commence rehabilitation proceedings. Therefore, based on the contents of the Examiner’s report, we sent letters to BTC creditors, whom we could reach, confirmed the intention to convert to rehabilitation proceedings, and we reported to the court the results using the motion.

Around 200 creditors (around BTC 105,000) have sent letters so far, which we believe proves that many creditors support our activities.

We are grateful for BTC creditors who sent letters.

Thank you for your continued support.

Nishimura & Asahi

Shin Fukuoka

Yuri Sugano

裁判所に対する上申書の提出(2)

2018年4月13日、当職らは、東京地方裁判所に対し、速やかに破産手続から再生手続に移行するよう改めて上申いたしました。

当職らは、2018年3月28日にも東京地方裁判所に対し上申書を提出しておりますが(詳細は2018年3月28日に投稿した「裁判所に対する上申書の提出」をご覧ください。)、未だに再生手続開始決定がなされておりません。そこで、当職らは、ビットコイン債権者から、再生手続への移行に関する意向を記載したレターを頂き、その結果を上申書に記載し、裁判所にビットコイン債権者の意向を報告いたしました。

現時点で、約200名の債権者(保有BTC数、約105,000BTC)からレターを頂いております。

再生手続への移行について同意を表明してくださったビットコイン債権者の方々には、深く感謝申し上げます。

今後も、当職らは再生手続への移行に向けて邁進する所存ですので、皆様からのご理解・ご協力を賜りたく、何卒宜しくお願い申し上げます。

西村あさひ法律事務所

弁護士 福岡真之介

弁護士 菅野 百合

Submission of a Motion to the Court

We submitted a motion to the Tokyo District Court on March 28, 2018, urging the court to promptly issue a decision to commence rehabilitation proceedings and convert the bankruptcy proceedings to rehabilitation proceedings.

Even though about a month has elapsed since the Examiner’s report was submitted, the court has not yet issued a decision to commence rehabilitation proceedings. We cannot help but say that it is taking too long.  The report states that it is reasonable to make a decision to commence rehabilitation proceedings on the condition that “measures taken to ensure the benefits of the bankruptcy creditors” are satisfactory. However, the bankruptcy trustee has not yet informed the creditors whether these measures will be taken, and the bankruptcy trustee is of the opinion that the court should decide and that the bankruptcy trustee is not in a position to judge.

In order to resolve the situation, we submitted the motion to issue a decision to commence rehabilitation proceedings.

Thank you for your continued support.

 

裁判所に対する上申書の提出

2018年3月28日、当職らは、東京地方裁判所に対し、速やかに再生手続開始決定を出し、破産手続から再生手続へ移行するように強く要望する上申書を提出いたしましたのでご報告します。

調査委員による調査報告書が提出されてから既に1ヶ月程が経過したにもかかわらず、未だに再生手続開始決定が出されないことは、あまりにも時間がかかりすぎているといわざるを得ません。調査報告書においては、再生手続開始決定するのが相当であるとの意見が述べられていますが、かかる意見は「利益を確保する措置」を講じることを前提とするとされています。しかし、未だ、破産管財人は、この措置を取るのか否かについてすら債権者に知らせておらず、また、再生手続開始の判断は裁判所がするものであり、破産管財人が回答できる立場にないとの見解を示しています。

このような状況を打破すべく、当職らは、裁判所に対して、再生手続開始決定を出すように上申書を提出した次第です。

引き続き、皆様からのご理解・ご協力を賜りたく、何卒宜しくお願い申し上げます。

The report of the creditors meeting on March 7, 2018

As we previously informed you, Mt. Gox’s creditors meeting was held on March 7, 2018. Handouts are available on the following Mt. Gox bankruptcy trustee’s website:

https://www.mtgox.com/img/pdf/20180307_report.pdf

 

  1. Report from the bankruptcy trustee

Details are posted on the above website. Especially noteworthy is that the bankruptcy trustee sold approximately 35,000 BTC and 35,000 BCH, and therefore obtained more than 40 billion yen (400 million dollars) from December 2017 through February 2018.

 

  1. Q&A session

Some creditors have said that they hope that these bankruptcy proceedings will be converted to civil rehabilitation proceedings.

A summary of the Q&A session is as follows:

 

Q1.     What is the meaning of the following terms stated in the examination report submitted by the examiner on February 28, 2018?

–   “the bankruptcy creditors (especially those having monetary claims corresponding to bankruptcy claims) who filed proofs of claims in the bankruptcy proceedings of Mt. Gox”;

–   “the benefits already expected to be obtained in terms of the bankruptcy proceedings”; and

–   “measures taken to ensure the benefits of the bankruptcy creditors”.

A1.     It is the examiner that wrote the examination report.  Therefore, we [the bankruptcy trustee] cannot answer regarding its contents.  We will discuss and consider the future direction with the bankruptcy court.

 

Q2.     Have you made a specific plan about the “measures taken to ensure the benefits of the bankruptcy creditors” stated in the examination report?  Do you intend to make any effort for the commencement of civil rehabilitation proceedings as the bankruptcy trustee?

A2.     We will discuss and consider the “measures taken to ensure the benefits of the bankruptcy creditors” with the bankruptcy court.  We understand the examiner’s concerns regarding the issue.  Therefore, we are ready to hear suggestions from creditors.

 

Q3.     When the content of the “measures taken to ensure the benefits of the bankruptcy creditors” has been decided, will we have the opportunity to receive an explanation beforehand as creditors?  Will I have a chance to state my opinion as a major creditor?

A3.     We will notify the creditors of our plan once it is determined.  We will hear the creditors’ opinions, and we would appreciate it if you could send us your written opinion.

 

Q4.     When and how did you sell BTC and BCH?  What was the difference between the sales figures for BTC and BCH?  Have you obtained any information from the U.S. Department of Justice on the disappearance of BTC?

A4.     We sold them at the market price through the cryptocurrency exchange service provider from December 2017 through February 2018.  The difference between the sales figures for BTC and BCH was just the timing of suspending sales; therefore, we did not have any particular intention.  We have not obtained any information from the U.S. Department of Justice.

 

Q5.     Please explain the current situation concerning the bankruptcy claims assessment procedure applied for by CoinLab, Inc.  Do you have any plans to pursue the liability of officers?

A5.     We do not have any specific ideas on settling the case for the time being, but we may consider that depending on the future situation.  We did consider suing Mr. Karpelès, but now it does not seem to be productive because he has gone bankrupt.

 

Q6.     Why don’t you distribute funds to the creditors even though there is enough cash in the bankruptcy estate?

A6      We obtained the cash recently by selling BTC and BCH.  With respect to distribution, there is an issue concerning assessing the amount of BTC creditors’ claims; therefore, it is difficult to determine whether proceeding with the distribution process would be desirable for the creditors.

 

Q7.     I think it is unjust to distribute the remaining assets to the shareholders of Mt. Gox.  Why don’t you proceed with the civil rehabilitation proceedings as Mt. Gox’s bankruptcy trustee?

A7.     We apologize if we have previously provided a misleading explanation, but we do not oppose transferring these bankruptcy proceedings to civil rehabilitation proceedings.  We understand the examiner’s concerns on the issue; however, it is the Tokyo District Court that has to decide whether to commence civil rehabilitation proceedings.

 

Q8.     I think it has taken far too long to proceed with the bankruptcy proceedings.  Is this due to the bankruptcy trustee neglecting its duties?

A8.     We recently obtained more than 40 billion yen (400 million dollars ) by selling BTC and BCH.  With respect to distribution, there is an issue concerning assessing the amount of BTC creditors’ claims; therefore, it is difficult to determine whether proceeding with the distribution process would be desirable for the creditors.

 

Q9.     I have never heard about the sale of BTC and BCH.  Why did you sell them when the market price of BTC crashed?  Why did you sell them in such a hurry?  Is selling BTC and other assets part of the “measures taken to ensure the benefits of the bankruptcy creditors” as pointed out by the examiner?

A9.     From the outset of the bankruptcy proceedings, we informed all relevant parties that we were going to sell BTC and BCH at the appropriate time.  We discussed this with the Tokyo District Court and decided when we should sell them.  Some creditors were of the opinion that we should sell BTC and BCH soon.  We believe that obtaining a lot of funds made it possible for us to take the “measures taken to ensure the benefits of the bankruptcy creditors”.