The United States Bankruptcy Court for the District of Delaware has announced that stakeholders of Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL) are required to submit their preliminary Crypto Loss Proofs of Claim by August 21, 2024, at 5:00 pm (ET). This filing is crucial for those intending to vote on the Chapter 11 plan, focusing solely on establishing voting eligibility and not on the eventual distribution of claims, which will be addressed later in the bankruptcy process.
Here’s Why Terra Victims Should Act Now
The court has detailed that stakeholders with claims against TFL arising before January 21, 2024, and TLL prior to July 1, 2024, must file by the stipulated deadline to ensure their participation in the voting process. This preliminary filing will not impact the final submission for distribution under the plan, which remains a separate matter.
Via X, Terra powered by LUNA (@terra_money) clarified: “If you have a Crypto Loss Claim against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024, please file them by the Preliminary Crypto Loss Claims Bar Date to ensure your claim is considered for chapter 11 voting purposes only. For the avoidance of doubt, the Preliminary Crypto Loss Claim Bar Date is for chapter 11 plan voting purposes only, not for allowance or distribution, which will be addressed in the chapter 11 plan.”
Stakeholders are directed to submit their Crypto Loss Proofs of Claim either through the official website of Epiq Corporate Restructuring, LLC, the claims and noticing agent, or by delivering their claims by hand or through mail to the designated addresses. It is emphasized that claims must be filed in English, denominated in US dollars as of the applicable petition date, and must be signed under penalty of perjury.
The definition of a ‘Crypto Loss Claim’ includes claims against the Debtors arising from the purchase, sale, or rescission of transactions involving a wide array of crypto assets linked to the Terra ecosystem. This covers various forms, including wrapped or bridged versions on any coin or token, staked or bonded Terra crypto assets, and any derivatives or swaps.
Regarding eligibility for filing, it is specified that all persons or entities holding Crypto Loss Claims against the Debtors that arose before 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 Preliminary Crypto Loss Proof of Claim Form, those whose claims have been allowed or paid in full by the Debtors, and creditors who do not wish to vote on the Plan.
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The failure to file a Preliminary Crypto Loss Proof of Claim by the deadline will result in the inability of stakeholders to vote on the Chapter 11 plan. However, this will not bar them from filing a claim for future distributions under the confirmed plan, highlighting the procedural nuances of these bankruptcy cases.
At press time, Terra Luna Classic (LUNC) traded at $0.00008666.
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