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
b. require the Liquidators to set a conversation rate – a date for determining the amount of Bitcoin or
(“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
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: