Creditors to Receive Repayment After Company's Bankruptcy

That same month, creditors may start receiving repayment following a successful completion of the company's bankruptcy proceeding.

The creditor rehabilitation plan of the failed cryptocurrency exchange Mt. Gox has provided an update on its repayment procedures.

  • The exchange states that the "Rehabilitation Trustee" - Nobuaki Kobayashi - is preparing to make his repayments in accordance with the exchange's approved rehabilitation plan.
  • Kobayashi published a report to explain the repayment procedures and his work as a trustee.
  • The document explains the options that creditors have when receiving their payments. They can opt for an early lump-sum payment and may receive a portion of their claims in the form of either Bitcoin or Bitcoin Cash.
  • In addition, Kobayashi has established a Restriction Reference Period from the end of August until “all or part of the initial payments are completed.”
  • It is possible that the value of Bitcoin could increase when Mt. Gox starts repaying its creditors next month. The trustee will not accept new claims transfer applications at this time until the initial round of repayments has been completed.
  • The crypto community is following the Mt. Gox case closely, as they await further news on the matter. Some believe that a repayment could lead to more Bitcoin price decline in an already bearish market, while others anticipate that it will have little impact on the price of the coin.
  • When the rehabilitation deal was finalized in November, Bitcoin's price was not expected to be severely affected by the repayment.
  • CEO Ki Young Ju of CryptoQuant publicized a tool on Thursday that allows people to set an alert for when any Bitcoin starts to leave Mt. Gox's public blockchain wallet.
  • In March, the exchange's former CEO issued a series of NFTs that were free for customers. The tokens are supposed to give holders access to UNGOX services, an effort that provides ratings and analysis of exchanges and their security levels.