Creditors Committee – 11 Oct 17

Bitcoin Builder has engaged a lawyer that is looking at establishing a Creditors Committee. This is a committee that can to some limited degree call the Trustee to account. They cannot dictate terms, but they can make their feelings clear to him, and suggest actions, and if necessary call him to the Tokyo court to challenge his decisions.

Apparently even though Japanese law allows for a Creditors Committee, it’s never been done before. It requires a majority of creditors to agree. We are looking at the details of how this consensus has to be proven to the court, however we may have access to email addresses from all creditors, so gaining and demonstrating that consensus is not an impossibility.

If we have a creditors committee we can call the Trustee to be more transparent and accountable, as well as challenging his decisions. It doesn’t mean that we can over-rule his decisions, but it will be a powerful tool to oppose his current plan of action.

Here is the information provided by Bitcoin Builder’s lawyer to the Google group.

       ” What the creditors committee can do other than calling for a creditors meeting: the creditors committee may state its opinions to the court or a bankruptcy trustee in bankruptcy proceedings (see Art 144 of the Law). A bankruptcy trustee is required to hear opinions of the creditors committee with regard to the matters concerning the administration and disposition of property that belongs to the bankruptcy estate (see Art 145 of the Law).
Regarding how to set up (ii) the creditors committee, here is the requirement.
(a) The number of committee members is not less than three and not more than ten.
(b) It is found that the majority of bankruptcy creditors consent to the committee’s participation in bankruptcy proceedings.
(c) It is found that the committee will properly represent the interest of bankruptcy creditors as a whole.
Thus, what need to be done first to set up a creditor’s committee is to contact bankruptcy creditors and get proxy from majority of them.”

The next step is to get clear understanding of what the court requires as proof that a majority of creditors agrees to a committee being established, and a team, of three-10, creditors, representing different claim sizes, volunteer to be on the committee.