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Getting CR approved 29/12/17

The court-appointed Examiner will rule on recommending CR to the court at the end of Feb.

There is one sticking point our lawyer has highlighted:

CR requires all creditors (fiat and BTC) to be treated equally, so the surplus must be shared out in a way that treats all creditors the same. But doing so would mean fiat creditors like BTC creditors, only get ~23% of their assets back, instead of 100% they would get from bankruptcy. This is unfair and in contradiction with another CR requirement that all creditors (fiat and BTC) benefit, or at least are not disadvantaged by CR. Clearly fiat creditors would be disadvantaged by this.

It’s an impasse that our lawyers are now preparing a case to find a way around. So that distribution is equal, and no one is disadvantaged.

[Edit: there’s a second issue which the lawyers have raised and is important to share too. Bankruptcy law states its outcome should reach a “binding” settlement. An interpretation of this means that even if we move to CR we’d have to be bound the maximum payout dictated under bankruptcy. To challenge this our lawyers need to bring in former judge and other legal experts form the Civil Rehabilitation team within the same company.]

To do this they will need to set legal precedents, and our lawyer believes it’s necessary to hire a number of legal scholars to provide opinions to sway the Examiner and allow them to feel comfortable setting those precendents. This is expensive. And has to be done quickly.

That’s why were are opening another funding round. The more money we can raise the more scholars opinions we can afford, and the more chance we have of swaying the scholars.

There is hope, my sense is we’ll be pushing at an unlocked door, but it won’t open if we don’t push.

We need to raise another ~$100,000 in legal fees. I’m asking members who have already paid, to make a voluntary donation with a guide of $2 (~£1.50) per Bitcoin of your claim, or whatever you can afford it. We need to average about $120 per person in the group, and some won’t be in a position to contribute, so if you can contribute more, then please do so.

You can donate any amount you like here:

£

I’m also asking people who are not members of the group to consider joining at this point by contributing $100. CR could potentially benefit those who have not had an approved claim. It could potentially benefit those with fiat claims. While I can’t guarantee that outcome, just as I can’t guarantee the success of CR, I’d ask those people to contribute too and join the group.

You can do so here: