On June 18, 2014, the U.S. Bankruptcy Court in Dallas will consider whether to grant recognition to the insolvency case pending in Tokyo. Based on the pleadings filed last week, it is a virtual certainty that the court will enter an order granting recognition.
Up to now, the two primary antagonists were CoinLab, Inc. and two putative class action representatives who are plaintiffs in a lawsuit filed in federal court in Chicago. Each filed a pleading advising the bankruptcy judge in Dallas that they do not oppose an order of recognition. This, however, does not mean that there will be clear sailing ahead for Mt. Gox or the others.
CoinLab’s pleading specifically noted that it reserved all of the rights it asserted in reciting objections to the putative class action plaintiffs’ tentative agreement with Sunlot that envisions restarting the exchange. Similarly, the putative class action plaintiffs asserted a right to challenge the venue of the Chapter 15 case. These reservations are a preview of potential fights ahead.
The bottom line – June 18 will be significant in that it is highly likely to be the date that the Chapter 15 petition for recognition is granted. It will also represent the opening bell for more litigation to come.