Bonds, Currencies & Commodities
Bitcoin fallout: Mt Gox files for US bankruptcy protection

Besides protection of its assets, Mt Gox has requested the suspension of actions in the US that jeopardise its efforts to restructure abroad

Troubled Bitcoin exchange Mt Gox has filed for protection under US bankruptcy law, 10 days after doing the same in Japan after a huge loss of the digital currency, a court document showed.


The Japanese Exchange is now protected temporarily under Chapter 15 of US bankruptcy law for foreign firms.


A bankruptcy court in Dallas, Texas accepted the request and will make a definitive ruling in April, the document said.


Chapter 15 protects assets in the US of foreign firms facing insolvency procedures in their home countries.


Besides protection of its assets, the exchange has requested the suspension of actions in the US that jeopardise its efforts to restructure abroad, it said in its court filing.


Mt Gox faces a class action lawsuit filed 27th February in Illinois by an American named Gregory Greene. He cited deceitful and illegal actions by MtGox, according to a court document.


“With respect to the Chapter 15 bankruptcy proceedings, today was a big victory for Mt Gox’s victims. Mt Gox tried to have all US proceedings ‘stayed’ or frozen while it goes at its own pace in the Japanese bankruptcy,” Greene’s attorney Steven Woodrow said in an email to AFP.


“We are working with attorneys from around the globe who are planning on filing additional cases in the near future.”


Mt Gox Bitcoin exchange filed for bankruptcy on 28th February in Japan, CEO Mark Karpeles saying it had lost nearly half a billion dollars’ worth of the digital currency in a possible theft.


The company’s lawyer said 750,000 Bitcoins belonging to customers had gone, along with Mt Gox’s own store of the currency, which she said was around 100,000 units.


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Solar power is the best & natural substitution for energy needs

What India truly needs is the setting up of small and medium size solar panel manufacturers who can offer turn-key jobs to individual houses

The Solar Energy Corporation of India (SECI) is the nodal agency established by the union government for implementing solar projects in the country. SECI has tied up with Japan International Cooperation Agency for raising funds for the initial infrastructure development and plans to provide loans to developers at low rate of interest that could vary between 4% and 5%.


SECI plans to set up a 1,000 MW solar park in Mehboobnagar district of Andhra Pradesh, in the Telengana region. This will be located on a 5,000 acre area, according to Rajendra Nimje, managing director of SECI. As per present plans, the entire capacity will come up in the next 18 to 24 months, and the Collector of Mehboobnagar has agreed to make available necessary infrastucture, at an estimated outlay of Rs600 crore. To facilitate the work, Solar Energy has entered into an agreement with Andhra Pradesh Industrial Infrastructure Corporation for facilitation of land.


Developers will be chosen through competitive bidding while the basic infrastructure is made ready in four to six months. It is expected that most solar units in the park will be in 10 MW capacity some are expected to be larger.


SECI has other ambitious plans too. One of the largest solar parks in the world will be set up with a 4,000 MW capacity in Rajasthan, while three others are planned in Odisha, Tamil Nadu and Rajasthan, besides a second one in Andhra Pradesh. It is estimated that the unit rate for sale could be around Rs5.50 which compares with the rate for power being sold in most states to the end consumer.


Nimje expects that SECI would be able to achieve the target of 10,000 MW of solar power by 2017. Karnataka, its neighbour, has similar solar energy plans and expect to announce its solar energy policy soon. Karnataka minister for power, DK Shivkumar stated that the government would encourage people to take up roof top solar energy to be tapped for their own family use and make available the excess to the State grid, for which a good price would be paid by the government.

In fact, it is proposed that the government would make it mandatory and ask all new building owners to have provisions for providing solar energy on the roof top. The proposed policy would be placed before the Cabinet soon. In the meantime, due to increasing power needs, state government plans to obtain 400 MW of power from Damodar Valley Corporation


He has also directed all electricity companies to ensure rural areas and homes get three-phase supply at least seven hours a day, particularly farmers should not suffer.


The question of obtaining permanent power supply through the natural solar source needs to be made mandatory all over the country. What we truly need is the setting up of small and medium size solar panel manufacturers who can offer turn-key jobs to individual houses. Such a move will reduce the heavy burden on the power generators who have to import fuel at great cost.


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



N Kanitkar

3 years ago

Solar power is at best a convenience energy source. To harness it, we need panels. These are not made by solar energy. These are made by industry fuelled by fossil fuel.

Can a solar panel in its usable lifetime generate electricity to make another solar panel. The laws of thermodynamics and Entropy in particular will tell you otherwise.

Secondly, the cost factor. Costs are externalised. The true cost of industrial products will never see the light of day. How can you explain the cost of a radio at 45 Rs when the individual costs of all the hundreds of different products in the radio is so large on any scale.

Also there is the question of NIMBI or the "Not in my backyard syndrome". Its nice to see nice looking solar panels connected to something in your house or some public utility. The problem is what we do not see we do not care about.

However as a convenience, it will see the light of day (pun intended)


Abhijit Gosavi

In Reply to N Kanitkar 3 years ago

A so-called 1 kW system (two solar panels) produces 850 kW units over the year. 850 kW are not enough to produce two solar panels? Plus, the energy it produces emits no greenhouse gases. Even wind turbines (which don't degrade for several years) need non-renewable energy for production, but once in operation, pay back quite quickly. What you say does apply to hydrogen energy (hydrogen doesn't exist naturally in the air by itself); however, even hydrogen, when it burns, does not produce CO2 --- a major plus!

Makes a lot of sense to use the sun where it is in abundance. Should help reduce dependence on oil and make (sunny) nations self-reliant --- this according to the International Energy Agency (not my thoughts).


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