On Friday the Tokyo District Court put on hold the ongoing bankruptcy proceedings for MtGox Co. and issued an order to start civil rehabilitation proceedings.
The failed operator filed for court protection under the civil rehabilitation law in February 2014 because of its ballooning debt load. The district court rejected the request in April 2018 and decided to begin bankruptcy proceedings.
The value of bitcoins owned by MtGox was about ¥10 billion at the time of the commencement of the bankruptcy proceedings, but soared to about ¥200 billion 2017. Meanwhile claims totaled about ¥46 billion at the time of the commencement.
In bankruptcy proceedings, assets are converted into cash and distributed to creditors, in civil rehabilitation proceedings, creditors may be paid in bitcoins. thus, some of the MtGox creditors in November last year filed a petition with the district court to change the bankruptcy proceedings to civil rehabilitation proceedings.