Fortress Investment Group proposes to buy out claims of creditors of MtGox for $ 100 million

Fortress Investment Group is offering MtGox lenders early compensation ahead of next year’s civil rehabilitation process. For this, the company allocated $ 100 million.

According to the letter, Fortress Investment Group is ready to compensate up to 80% of the claim amount to the lenders who submitted applications to the MtGox exchange that closed in 2014.

Fortress estimates that civil rehabilitation payments will begin no earlier than 2022, as the results of the vote on the new rehabilitation plan approved by the court will be announced only in October. Here is an excerpt from a letter written by Fortress Managing Director Michael Hourigan:

“The MtGox Trustee recently published a civil rehabilitation plan that could enable lenders to receive repayment in 2022. According to our lawyer, this distribution will take place in the middle of next year. Instead of waiting another year to one and a half years, we offer a liquid option for lenders who want to receive fiat currencies or BTC right now. ”

The firm committed $ 100 million to purchase these claims, betting that thousands of MtGox lenders would prefer to receive money faster, albeit at a slight discount. Fortress Payouts are based on a calculator created by Kim Nilsson to help MtGox lenders calculate their mid-2022 rehab payout.

MGIF LP is a division of Fortress Investment Group, one of the largest lenders of MtGox, which previously bought back the exchange’s debts from many clients. Recall that according to the approved civil rehabilitation plan, the date for fixing the lists of voting creditors is March 24. According to the draft plan for the distribution of assets of the MtGox exchange, the priority will be those lenders to whom the exchange must compensate for small amounts and losses declared exclusively in fiat currency.

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