Mt.Gox’s creditors have been provided with the draft reimbursement plan submitted to the judge a month ago.
This draft is not public, partly because it is still under review by the judge and it is not yet known whether it will be approved or not.
First of all, it has to be said that it does not contain any date for the start of reimbursement payments.
It describes the repayment plan, but without dates, as these also depend on the judge’s decisions.
What is known, however, is that the repayment schedule is divided into two phases.
The two phases of the Mt. Gox repayment plan
During the first phase, priority payments will be made in fiat currency, up to a maximum equivalent of 200,000 yen per creditor.
In the second phase, the amounts paid during the first phase will be deducted from the total assets available to the insolvency administrator, and the remainder will be distributed to those creditors who are still entitled to receive repayments.
This second phase will in turn be divided into two sub-phases.
Therefore, a relatively long, and certainly not immediate, timeframe can be expected from the moment the judge approves the plan and allows payments to proceed.
An interesting fact is that creditors will have the choice of being paid earlier, in fiat currency, or later, in BTC and BCH.
Since the funds available to the latter will be equal to those remaining after the payment of the former, it is likely that creditors will be better off choosing to be paid in fiat currency now, rather than waiting to be paid later in crypto.
This also means that the insolvency administrator, depending on the demands of the creditors, may have to sell BTC and BCH on the market in order to collect fiat currencies with which to pay the creditors who have chosen fiat currencies as a collection method. Depending on how many creditors choose this method, the liquidator will be forced to sell BTC and BCH more or less quickly on the open market.
However, it must be specified that this is only a draft of the plan as presented to the judge, and if the judge rejects it, it should be amended.