"The proposal will need approval from a majority of creditors. Given the distrust directed at Mt. Gox and Mark Karpeles even before the revelation of insolvency, it seems entirely possible that creditors will reject any restructuring bid in favor of liquidation."
Apparently there are other investors willing to run mtgox though? not sure if thats true or not.
Topic: Understanding the Mt. Gox bankruptcy process - page 2. (Read 2817 times)
Quote
The timing of any acceptance of Mt. Gox's application for civil rehabilitation will have major implications because, according to Article 124 of Japan's civil rehabilitation code, liabilities may be registered at market values when rehabilitation commences. This throws cold water on Mt. Gox's delusional habit of valuing its obligations at its rock-bottom internal price (referenced in the leaked 'Crisis Strategy Draft' document). Moreover, the price of bitcoin has recovered by around 20% since the initial filing, vastly increasing Gox's outstanding liabilities.
However, Article 124 also allows the court to order that valuation of liabilities be made on a continuing basis as the company restructures. Given bitcoin's volatility in recent years, this could leave a restructured Mt. Gox chasing an ever-mounting pile of obligations to bitcoin-denominated creditors – or it could mean those debts shrink to nearly nothing, if bitcoin collapses under the weight of failures like Mt. Gox's own.
http://finance.fortune.cnn.com/2014/03/06/mt-gox-bitcoin-bankruptcy/However, Article 124 also allows the court to order that valuation of liabilities be made on a continuing basis as the company restructures. Given bitcoin's volatility in recent years, this could leave a restructured Mt. Gox chasing an ever-mounting pile of obligations to bitcoin-denominated creditors – or it could mean those debts shrink to nearly nothing, if bitcoin collapses under the weight of failures like Mt. Gox's own.
This can get really ugly fast if the BTC/JPY rate were to increase by say a factor of 10 or even 100 which given the history of Bitcoin is within the realm of possibilities.
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