As set out in the Liquidators’ notice to Gatecoin’s creditors in June 2021 (“June 2021 Notice”), before proceeding to realise the crypto assets, the Liquidators wish to ascertain whether the creditors may wish to receive their dividend entitlement by way of either Bitcoin or Ethereum (known as a distribution in specie) rather than by way of a cash dividend (from the proceeds of the sale of the crypto assets).
Any such distribution in specie of crypto assets:
a. will be by reference to the creditors’ claim admitted by the Liquidators (“Creditor’s Admitted Claim”) and will not result in a creditor receiving the same amount of crypto assets standing in credit in their Gatecoin account at the date of winding up;
b. require the Liquidators to set a conversation rate – a date for determining the amount of Bitcoin or Ethereum (“Deemed Conversation Date”) that equates to the amount of the Creditor’s Admitted Claim. This conversion rate is necessary to enable the determination of the amount to be distributed to the creditors and will be based on the market price of Bitcoin and Ethereum at a point in time to be determined by the Liquidators; and
c. once the Deemed Conversion Date is set, it cannot be changed.
i. if, between the Deemed Conversion Date determined by the Liquidators (e.g. 30 June 2021) and the date of actual distribution of the crypto assets (e.g. 30 October 2021), the market price of the Bitcoin or Ethereum has decreased (as compared to the conversion rate on the Deemed Conversion Date), the Creditor in question will not be able to claim the difference in value from the Liquidators; and
ii. if a creditor ultimately elects for a distribution in specie, he/she will not be able to “switch back” to distribution by way of a cash dividend.
Any creditors who wish to receive their dividend in specie (i) will be required to ensure that he/she have a third-party custodian to receive the crypto assets; and (ii) may be required to enter into binding legal documentation with the Liquidators to set out the details of, among other things, the matters set out in the above paragraph.
For the avoidance of doubt, any creditors who do not indicate preference for distribution in species will be treated as confirming their willingness to receive cash dividend upon distribution.
This request seeks to gauge the wishes of creditors in respect of the method of dividend distribution. The Liquidators are not bound to implement any method including where there is insufficient interest from creditors.
Please choose one of the following options to proceed:
Thank you for your confirmation.
For the avoidance of any doubt, your confirmation of account balances on this website does not constitute a filing of proof of debt form under the Hong Kong Companies (Winding Up and Miscellaneous) Ordinance.
If you have not filed your proof of debt form against Gatecoin to the Liquidators, please contact the Liquidators on +852 3761 3875 or via email at gatecoincs@borrelliwalsh.com.
Thank you for your information and supporting documents.
The Liquidators will review these information and will contact you in due course.
Should you have any queries or require any further information, please contact the Liquidators on +852 3761 3875 or via email at gatecoincs@borrelliwalsh.com.