Regulation
TFL Announces Bankruptcy Claims Deadline, Bullish For LUNC & USTC?
Terraform Labs, the firm behind Terra Classic (LUNC), has made a significant announcement regarding their Chapter 11 bankruptcy cases. The General Bar Date for filing claims has been set for August 9, 2024, at 5:00 p.m. ET. This deadline is crucial for creditors who have claims against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024.
Further Details On Terra Bankruptcy Claims Deadline
Terraform Labs Pte. Ltd. and Terraform Labs Ltd. filed their voluntary cases under Chapter 11 on January 21, 2024, and July 1, 2024, respectively. Hence, the court’s order, issued on July 9, 2024, establishes the deadlines and procedures for filing claims. The bar dates set by the court include several key deadlines for Terra bankruptcy claims:
- August 9, 2024, at 5:00 p.m. ET: General Bar Date for all non-governmental claims.
- August 9, 2024, at 5:00 p.m. ET: Governmental Bar Date for claims against TFL.
- December 30, 2024, at 5:00 p.m. ET: Governmental Bar Date for claims against TLL.
- Amended Schedules Bar Date: 30 days from the date of an amendment or supplement to the Debtors’ schedules
- Rejection Damages Bar Date: 30 days following an order authorizing rejection of any executory contract or unexpired lease.
Moreover, Terra’s creditors are urged to file their proofs of claim using the appropriate forms and guidelines. These claims must be written in English, denominated in U.S. dollars as of the applicable petition date, and include specific details and supporting documentation.
The procedures for filing claims are outlined clearly: “Proofs of Claim must substantially conform to the Proof of Claim Form or the Official Form.” In addition, they must be submitted either electronically via the Epiq website or by mail to Epiq Corporate Restructuring, LLC.
The failure to timely file a proof of claim by the applicable Bar Date could result in significant consequences. According to Terra’s notice, if the claim holder fails to file proof of claims they “shall not be treated as a creditor with respect to such claim for the purposes of voting and distribution in the Chapter 11 Cases on account of such claim.”
Potential Impact On LUNC & USDT
This announcement has stirred various reactions within the crypto community. It particularly concerns those invested in Terra’s digital assets, LUNC and Terra USDT (USTC). Some see this as a pivotal moment that could potentially impact the future valuation and stability of these assets.
The recent announcement by Terra sets the stage for a bullish momentum for LUNC and USTC as it restores the network’s lost credibility. Moreover, Terra Luna Classic price neared the $0.000080 mark today. At press time, LUNC price surged 3.11% to $0.00007948 on Tuesday, July 16.
Also Read: SEC Explains Why Terra Luna Classic, MATIC & 3 Other Crypto Are Securities
Excluded Crypto Claims
One of the key aspects highlighted in the notice is the “Excluded Crypto Claims” exempt from the General Bar Date. This broad exclusion includes “any claim arising from or relating to the purchase, sale, or rescission of the purchase or sale, of digital assets issued, created, generated, minted, promoted by or otherwise associated with the Debtors and their affiliates, the Terra Ecosystem, or any decentralized or centralized application or protocol on the Terra Luna Classic and Terra Luna blockchains.”
The clear delineation of crypto-related claims and their separate handling underscores the complexities involved in the bankruptcy proceedings of blockchain companies. Moreover, it also highlights the unique nature of digital assets and the specific legal considerations they entail.
For those holding Excluded Crypto Claims, the notice advises vigilance and awareness of upcoming deadlines. In a post on X, Terraform Labs mentioned, “Please note that if you believe you have an Excluded Crypto Claim (as defined in the bar date notice linked below), the General Bar Date does not apply to your Excluded Crypto Claim, for which a later bar date will be established.”
Also Read: Tether Appoints New Exec To Lead Economic Analysis For Regulatory Strategy
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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