TFL Announces Bankruptcy Claims Deadline, Bullish For LUNC & USTC?

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As a seasoned financial analyst with extensive experience in the cryptocurrency sector, I closely follow developments within the industry and keep abreast of significant announcements from major players. Terraform Labs’ recent update regarding their Chapter 11 bankruptcy cases is an intriguing development that warrants careful consideration.

Terraform Labs, the company responsible for Terra Classic (LUNC), has made an important declaration concerning their Chapter 11 bankruptcy proceedings. The cut-off date for creditors to submit their claims is August 9, 2024, at 5:00 p.m. Eastern Time. This deadline holds significance for those who hold debts against TFL prior to January 21, 2024, or against TLL before July 1, 2024.

Further Details On Terra Bankruptcy Claims Deadline

TFL and TLL submitted their voluntary petitions for Chapter 11 protection on January 21, 2024, and July 1, 2024, respectively. Consequently, the court’s decree, announced on July 9, 2024, defines the timelines and procedures for lodging claims. The court-appointed deadlines for filing Terra bankruptcy claims are as follows:

  1. August 9, 2024, at 5:00 p.m. ET: General Bar Date for all non-governmental claims.
  2. August 9, 2024, at 5:00 p.m. ET: Governmental Bar Date for claims against TFL.
  3. December 30, 2024, at 5:00 p.m. ET: Governmental Bar Date for claims against TLL.
  4. Amended Schedules Bar Date: 30 days from the date of an amendment or supplement to the Debtors’ schedules
  5. Rejection Damages Bar Date: 30 days following an order authorizing rejection of any executory contract or unexpired lease.

In addition, Terra’s creditors are encouraged to submit their claims utilizing the designated forms and instructions. The claims should be drafted in English, priced in US dollars based on the relevant petition date, and provide detailed information and accompanying evidence.

To file a claim, you need to follow these guidelines: The evidence supporting your claim should closely match the format of the Proof of Claim Form or the prescribed Official Form. You can submit your proof electronically through the Epiq website, or mail it to Epiq Corporate Restructuring, LLC.

If you miss the deadline to submit a proof of claim by the specified Bar Date, your claim may not be recognized during the Chapter 11 proceedings. As stated in Terra’s notice, you “will not be considered as a creditor for voting and distribution purposes regarding that particular claim.”

Potential Impact On LUNC & USDT

The announcement has sparked diverse responses among crypto enthusiasts, prompting particular interest from investors in Terra’s digital currencies, LUNC and Terra USDT (USTC). For some, this development represents a critical juncture that could significantly influence the worth and stability of these assets moving forward.

The latest declaration from Terra creates favorable conditions for a bullish trend in the prices of LUNC and USTC. This development helps restore the network’s previously tarnished reputation. Today, the price of Terra Luna Classic approached $0.000080. At this moment, the value of LUNC increased by 3.11% to reach $0.00007948 on July 16, 2022.

Excluded Crypto Claims

One notable point in the announcement is the “Exempted Cryptocurrency Claims” that fall outside the scope of the General Bar Date. This extensive exclusion encompasses any claim stemming from or connected to the acquisition, disposal, or reversal of the transaction involving digital assets linked to 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.

In the bankruptcy process of blockchain firms, the distinct classification and management of crypto-related assertions demonstrate the intricacies involved. Furthermore, this approach emphasizes the singular characteristics and legal complexities associated with digital assets.

For individuals with Excluded Crypto Claims, take heed of the warning in the notice regarding approaching deadlines. According to Terraform Labs’ post on X, if you suspect you have an Excluded Crypto Claim (as outlined in the linked bar date notice), note that the General Bar Date does not apply to your specific claim. Instead, a separate deadline will be set for your Excluded Crypto Claim.

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2024-07-16 14:16