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Shortly before the hearing adjourned, Montali expressed his puzzlement in the entire affair and wondered why the company simply didn't just convert its Chapter 11 bankruptcy protection into a Chapter 7, which allows a company to liquidate under American bankruptcy law.
"The observation that I’ve had since Day 1: I've expressed the unusualness of this new business called Bitcoin coming into our old familiar bankruptcy world, and I find it beyond belief that someone who understands Bitcoin wouldn't have the slightest interest under the bankruptcy code," Judge Montali said. "I'm going to defer to the judgement of the committee and the judgement of the debtor."
"The observation that I’ve had since Day 1: I've expressed the unusualness of this new business called Bitcoin coming into our old familiar bankruptcy world, and I find it beyond belief that someone who understands Bitcoin wouldn't have the slightest interest under the bankruptcy code," Judge Montali said. "I'm going to defer to the judgement of the committee and the judgement of the debtor."
Weren't we first converted from chapter 7 to chapter 11?
Yup, anyone looking for a summary of what has happened so far this is my take...
After being forced into chapter 7 Hashfast delayed for a month then filed a motion asking the judge to convert the case to chapter 11 which they are entitled to do under bankruptcy law.
Not that it matters at this point, but who approved Hashfast's request to convert to chapter 11? Judge Montali? I know I should know this but this question is part rhetoric, part self-prescribed ignorance.
Yes, Judge Montali approved it. It was of course the decision of Hashfast management to file it in the first place. This was before the creditors had any collective representation to oppose it.
He should now have at least a glimpse of an answer as to why Hashfast management didn't just stay in Chapter 7. Hopefully this helps us creditors re: litigation.
