Creditor CoinLab Opposes Mt.Gox Resuscitation Plan

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Creditor CoinLab Opposes Mt.Gox Resuscitation Plan

CoinLab, the entity that formerly handled Mt.Gox operations in the US and Canada has moved to object to the plans to resuscitate the now collapsed bitcoin exchange. Investors groups that include John Betts, Mathew Roszak and a member-elect of Bitcoin Foundation Brock Pierce have applied to revive Mt.Gox.

As The Bitcoin News reports, CoinLab signed a deal to take care of the purchase, sale and trade of bitcoin on behalf of Mt.Gox customers in the US and Canada in 2012. The Seattle-based virtual currency firm moved to court, accusing Mt.Gox of failure to provide it with sufficient resources to meet its end of the deal. Mt. Gox later challenged the move in court in September. The dispute has not been resolved today.

The official filing claims among other things that revival proposal by Sunlot does not consider assertions of other unsecured creditors, with CoinLab included, and therefore calls for additional consideration before proceeding for approval.

“In an attempt to obtain approval of the Sunlot Proposal, Sunlot has crafted a procedural maneuver that attempts to cram down the proposal upon creditors, while avoiding competitive bidding or other meaningful creditor safeguards,” the filing read in part.

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The application is likely to be considered in a status conference in a Dallas Court on Tuesday.

CoinLab is seeking to ascertain that its concerns are addressed before a final deal regarding Mt. Gox is reached.

According to Coindesk, CoinLab said it’s been forced to find ways to safeguard its interests for now, until such a time when it will receive guarantees that its interest will be protected, before the defective Sunlot Proposal “can gain an unfair advantage.”

CoinLab seemed to pour cold water on Sunlot’s exclusive will to take over the exchange, asserting that its valid deal to handle Mt.Gox’s North American customers and experience working with the bitcoin exchange place it in a better position to manage its (Mt. Gox’s) affairs on behalf of its creditors.

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To contact the reporter of this story; Deepak Tiwari at deepak@forexminute.com