Now Mt.Gox's status is civil rehabilitation. All compensation plans are negotiable, and this is handled the same way in the legal systems of the vast majority of countries.
Simply put, when a company is unable or refuses to pay its debts, creditors have the right to ask the court to liquidate the company. If bankruptcy is established, all company assets are liquidated and auctioned, and the auction proceeds are distributed to the rights holders according to a certain priority order and proportion.
Of course, the company itself can also file for bankruptcy, and the subsequent process is the same.
Alternatively, the company can undergo civil rehabilitation, that is,convene creditors for a meeting to negotiate a corporate rehabilitation agreement that postpones or/and reduces part of the debt, and then tries to rebuild the company according to the agreement and slowly repay the money.
In this process, if it is found that the original plan cannot be achieved, then of course the agreement can be renegotiated, such as postponing the repayment deadline, etc.
And including the first negotiation for the initial application for rehabilitation, as well as subsequent regular negotiations, in any negotiation, creditors can oppose the rehabilitation plan. If the vote result opposes it, the company enters bankruptcy liquidation. After that, it is a normal liquidation process.
So it is not that the law allows Mt.Gox to extend, but rather the law allows companies to change rehabilitation plans, and then you creditors approved the plan at the creditors' meeting. To put it bluntly, it is the creditors' problem.