3/3/2014
MtGox KK
Representative Director Karpeles Mark Robert Marie

Answers to Frequently Asked Questions Regarding the Civil Rehabilitation Procedures

Regarding rehabilitation procedures, answers to commonly occurring frequently asked questions have been consolidated below for your reference. Furthermore, with the progress of the civil rehabilitation procedures, the given statements may be amended or corrected as necessary.

Additionally, regarding the loss of Bitcoin by our company that are being dealt with in another civil rehabilitation process, please refer to the  "Announcement Regarding An Application For Commencement Of A Procedure Of Civil Rehabilitation" document published on February 28, 2014, for the facts that have been established to this date.

Q: What kind of procedure is the Civil Rehabilitation Procedure?
A: A Civil Rehabilitation Procedure is a procedure declared in times when a company is not able to repay the debt by the due date without causing any significant adverse effect on business continuity, etc. According to the majority rule of the creditors, in conjunction with receiving debt reduction, a renegotiation of payment terms, as well as a change of payment deadlines can be agreed on. It is a legal rebuilding procedure that allows debts to be resorted and the company to reopen.

Q: Is there any statement from MtGox KK, its parent company, or any related companies?
A: At this time, there is no such statement. We don't know if there will be a statement in the future.

Q: When will an information session targeted at the creditors be held?
A: Regarding the holding of an information session for creditors, at the present moment nothing has been decided.

Q: When will the Bitcoin exchange reopen?
A: At this point is it not decided. For the time being, we believe that priority should be given the situation of the lost Bitcoin and insufficient account balances.

Q: You can't return the deposited Bitcoin or money?
A:
[NOTE: This translation should be improved. よろしくね～]

By filing for civil rehabilitation proceedings, the court has ordered a freeze of our assets ("temporary restraining order"; contents below). Subject to this, we are prohibited to shall make payment to creditors or to return of the assets of the company.

Therefore, we are sorry, but we are not allowed to return deposits and Bitcoin. For repayment of money or Bitcoin that were deposited, the repayment process will be outlined in a proposed rehabilitation plan to be formulated in the future.

(Content of Restraining Order)

The company shall not commit the following acts:

1. With the exception of 1, 2 and 3 below, repay debts that arose up to 27 February 2014 or to provide securities for such debt

(1) Debt resulting from taxes or any national taxes
(2) Debt resulting from employment relationships with employees
(3) Debt resulting from rent, utilities charges, and communication charges

2. Except for transactions belonging to the company director, transfer rights relating to property owned or occupied, creating securities, or disposing of rental property.

3. Except for the purpose of recovery of debts by the company, transferring property of the company, or the disposing of any securities.

Q: What should I do in order to receive my money or Bitcoin back?
A: After civil rehabilitation proceedings have begun, you must fill out a proof of claim form.

Q: What is the procedure for filing a proof of claim?
A: By the time civil rehabilitation proceedings start, we will provide guidance for filling in a proof of claim form on our homepage.

Q: How high is the payment rate percentage in the proposed rehabilitation plan?
A: At this time, we cannot provide a specific number.

Q: When will the proposed rehabilitation plan be created?
A: We do not know at this point. The deadline to submit the proposed rehabilitation plan will be decided by the court once rehabilitation proceedings have started. We will be able to create a rehabilitation plan before the deadline.

Q: When will civil rehabilitation proceedings start?
A: To be determined. Whether or not proceedings will start at all, and when they will start, is up to the judgment of the court.

Q: How will the civil rehabilitation proceedings proceed from now?
A: The court alone can determine the schedule of civil rehabilitation proceedings. At this time proceedings have not yet started, so we do not know how the schedule will turn out.

However, because in this case the majority of creditors are overseas, it will probably be a schedule that is different from that of ordinary civil rehabilitation proceedings.