Terraform Labs has established August 21, 2024, as the deadline for submitting Preliminary Crypto Loss Claims to vote on their Chapter 11 Plan.
Terraform Labs Pte. Ltd. and Terraform Labs Limited have notified creditors about submitting claims for cryptocurrency losses in their Chapter 11 bankruptcy cases.
To be included in the proposed Chapter 11 Plan voting process, creditors must submit their Preliminary Crypto Loss Proof of Claim forms by August 21, 2024.
Date of Terraform Labs’ Voting on Crypto Loss Claims
All individuals and entities with crypto loss claims against Terraform Labs must submit their Preliminary Crypto Loss Proof of Claim forms by August 21, 2024, as noted in a recent Terraform notice. This submission is essential for creditors who wish to exercise their right to vote on the proposed Chapter 11 Plan.
The claims process is designed to enable all interested parties to participate in the restructuring plan and, if applicable, receive distributions from the crypto loss claims pool.
The Chapter 11 cases of Terraform Labs Pte. Ltd. and Terraform Labs were voluntarily filed on January 21, 2024, and July 1, 2024, respectively. The notice also emphasizes the necessity of adhering to the specific guidelines for filing claims, as it may result in creditors being unable to vote on the plan.
Criteria and Eligibility for Claims Filing
To participate in the plan’s vote, each Creditor who experienced losses due to interactions with the Debtors before the petition dates must submit a claim. The term “claim” is widely used and encompasses a payment claim, regardless of whether it is contested, liquidated, unliquidated, actual, or potential, and whether it has become due. It also encompasses equitable remedies that result in payment obligations.
Individuals, partnerships, corporations, joint ventures, trusts, and government entities must file.
Exceptions to the filing of proofs of claim include those who have already filed their claims in a form that is substantially similar to the instant form, claims that a court order has already permitted, paid claims of the Debtors, claims between Terraform Lab’s entities, and those who have elected not to exercise their voting rights on the plan.
Submission Procedures and Guidelines
Specific procedures for submitting the Preliminary Crypto Loss Proof of Claim forms are detailed in the notice. The claims must be made under penalty of perjury, expressed in U.S. dollars as of the date of the petition and in English. The claims may be submitted via the Epiq website or by mail to Epiq Corporate Restructuring, LLC.
Nevertheless, supporting documentation is optional at this informational level; however, it may be requested later if the proposed Chapter 11 Plan is approved.
Although electronic submission is preferred, paper submissions are also permitted through first-class mail, personal delivery, or overnight delivery. No claim will be approved if submitted via email, telecopy, or facsimile (except through the designated electronic means).
The holder will not be considered a creditor for voting on the Debtors’ Chapter 11 Plan if the Preliminary Crypto Loss Proof of Claim is not filed. Terraform Labs had previously established the General Bar Date for filing claims as August 9, 2024.
Price Trends for LUNC, USTC
In the interim, the price of Terra Classic (LUNC) has been adverse over the past 24 hours, fluctuating between an intra-day high and low of $0.00009209 and $0.00008823. At the time of publication, the price of LUNC was $0.00009057, representing a 0.31% decrease.
Nevertheless, the USTC price remained bullish despite a bull-bear tussle for dominance, with a 24-hour high and low of $0.02138 and $0.01974, respectively. At the time of publication, USTC was trading at $0.02039, representing a 0.75% increase from the support level.
