The U.S. Bankruptcy Court for the District of Delaware has announced that stakeholders in Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL) are required to file preliminary evidence of their cryptocurrency loss claims by August 21, 2024, at 5:00 p.m. (ET). This filing is critical for those planning to vote on the Chapter 11 plan, as it focuses solely on determining voting eligibility and not on the final distribution of claims, which will be addressed later in the bankruptcy process.
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The Court clarified that stakeholders who have claims against TFL before January 21, 2024, and TLL before July 1, 2024, must file them by the specified deadline to ensure their participation in the voting process. This initial filing will not affect the final filing of the distribution under the Plan, which remains a separate matter.
Via X, Terra is powered by LUNA (@terra_money) It has been clarified.“If you have a cryptocurrency loss claim against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024, please file it by the Initial Cryptocurrency Loss Claims Expiration Date to ensure that your claim is considered for purposes of voting on the Chapter 11 Plan only. For the avoidance of doubt, the Initial Cryptocurrency Loss Claims Expiration Date is for purposes of voting on the Chapter 11 Plan only, and not for allocation or distribution, which will be addressed in the Chapter 11 Plan.”
Stakeholders are requested to submit proof of cryptocurrency loss claims either through the official website of Epiq Corporate Restructuring, LLC, or the Claims and Notice Agent, or by hand-delivering or mailing their claims to the specified addresses. It is emphasized that claims must be submitted in English, denominated in US dollars as of the applicable petition date, and must be signed under penalty of perjury.
The definition of “cryptocurrency loss claim” includes claims against debtors arising from the purchase, sale, or cancellation of transactions involving a wide range of crypto assets associated with the Terra ecosystem. This includes various forms, including wrapped or linked versions of any currency or token, pledged or linked Terra crypto assets, and any derivatives or swaps.
With respect to eligibility to file a petition, it has been determined that all persons or entities with cryptocurrency loss claims against the debtors that arose prior to the petition dates and who wish to vote on the Chapter 11 Plan must file a claim. Exemptions are granted to those stakeholders who have already filed a proof of claim in a form substantially similar to the initial cryptocurrency loss claim form, those whose claims have been accepted or paid in full by the debtors, and creditors who do not wish to vote on the Plan.
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Failure to provide initial proof of cryptocurrency loss by the deadline will result in stakeholders being unable to vote on the Chapter 11 plan. However, this will not prevent them from filing a claim for future distributions under the confirmed plan, highlighting the procedural nuances of these bankruptcy cases.
At the time of publishing this report, Terra Luna Classic (LUNC) was trading at $0.00008666.
Featured image by LindedIn, chart by TradingView.com
