Headlines

A group of investors seeking to buy Mt. Gox has launched a website to garner support from creditors of the bankrupt bitcoin exchange to prevent a liquidation of its assets, Reuters reported. "We need your help to stop a liquidation, which would be good neither for Mt. Gox creditors nor bitcoin's reputation with the general public and regulators," the investors wrote on the website. Mt. Gox, once the world's biggest bitcoin exchange, is likely to be liquidated after a Tokyo court dismissed the company's bid to resuscitate its business, the court appointed administrator said on Wednesday.

Up to 75,000 van and car drivers are being advised to seek alternative insurance cover following the collapse of Dublin-based Setanta Insurance, the Irish Times reported. The insurance firm, which was licensed by the Maltese Financial Services Authority, had been in the process of winding up its business here since January. However, at an extraordinary general meeting yesterday, shareholders were told a solvent run-off of the business was no longer possible and a decision was made to immediately dissolve the business.

Shoe Rack plans to seek fresh investment after the appointment of an examiner to the footwear chain, the Irish Times reported. The High Court appointed accountant Anthony Weldon of Kieran Ryan & Co as examiner following a petition from its directors earlier this month. Shoe Rack employs 70 people and operates 10 stores under its own brand and three concessions. It recently closed outlets in Cork and Dublin.

Romania’s new Insolvency Code, which was adopted on Tuesday, in the Parliament, allows for judiciary re-administration plans to be more easily accepted from now on in Romania. It also moves the focus from a company’s total debt value and debt per creditor, to the number of creditors, Romania-Insider.com reported. This way, creditors which hold a smaller debt package in an insolvent company have a bigger say in the re-organization vote.

Britain's Co-operative Group will report a loss of more than 2 billion pounds on Thursday, laying bare the full damage done by disastrous acquisitions, a drugs scandal and an exodus of executives that have put its future as a mutual into doubt, Reuters reported. Losses at the group, whose activities range from supermarkets to funeral services, are expected to be up to 2.5 billion pounds for 2013, according to a source close to the matter.

Spanish media conglomerate Vertice 360 has declared insolvency and filed for a suspension of payments, which paves the way for a court-appointed administrator to prioritize debt and mediate payments with creditors, The Hollywood Reporter reported. The move comes after the Vertice failed to reach an agreement on its own with its creditors. The film and television group has been seeking to increase capital through various methods since December 2013, after posting a financial debt of $19.9 million (€14.4 million), with $93.7 million (€67.8 million) in losses.

German luxury fashion company Strenesse, once known for dressing the German national soccer team at official events, has filed for insolvency, it said on Wednesday, Reuters reported. The family-owned company, which has been struggling with its finances but seemed back on a firmer footing in February when creditors agreed a new 12 million-euro ($16.6 million) bond, said it would seek to restructure itself under insolvency proceedings. "We want to return Strenesse to profitability as soon as possible," lawyer Michael Pluta, who will act as chief restructuring officer, said.

Romania's Chamber of Deputies, or the lower house of the parliament, on Tuesday passed an insolvency bill to ensure honest business environment, New Europe Online reported. The bill proposes "an insolvency code that puts together all the regulations governing the pre-insolvency and insolvency mechanisms targeting the economic operators and it does so in a correlated and adjusted manner," explained Justice Minister Robert Cazanciuc.

MtGox, once the biggest bitcoin exchange in the world, is likely to be liquidated after a Japanese court denied it bankruptcy protection on Wednesday, The Guardian reported. The company's assets will be sold off and used to pay its creditors, including those with accounts on the site. But any creditor will now recoup less than their initial stake, although it remains to be seen how much the infrastructure of the firm, as well as intellectual property including the MtGox brand, is worth.

The adviser of troubled Italian energy group Sorgenia will meet creditor banks on Thursday with a final deal over debt restructuring in sight, a source close to the matter said, Reuters reported. "The deal is within reach, there will be a meeting tomorrow," the source said on Wednesday. Sorgenia, controlled by holding company CIR has run up 1.9 billion euros of debt - 600 million euros of which must be cleared to keep it afloat in the short term. Sorgenia owes money to about 20 Italian and foreign banks. Its main creditor is bailed-out Italian lender Banca Monte dei Paschi di Siena.