Terraform Labs Declares Bankruptcy Claims Deadline

LUNC & USTC Investors Alert: Key Bankruptcy Filing Date Announced

Terraform Labs the company behind Terra Classic (LUNC) has recently set an important deadline for filing for bankruptcy which has caused a lot of stir in the crypto space.

The deadline for filing is 9th August 2024 which is a critical time for anyone with claims against Terraform Labs. This announcement has been made at a time when the firm has been going through the worst time financially after it filed for Chapter 11 bankruptcy in January 2024. The consequences of this action are being followed, especially by holders of LUNC and Terra USDT (USTC) – the company’s digital assets.

What's the News

Terraform Labs has officially declared the date by which creditors need to file for bankruptcy which is on 9th August 2024 at 5:00 p.m. ET. This deadline relates to creditors with claims against TFL that existed prior to 21st January 2024 or against TLL that existed prior to 1st July 2024.

The court's order from 9th July 2024 outlines several key dates including the General Bar Date for non-governmental claims and the Governmental Bar Date for claims against TFL and TLL.

For Terra's creditors, it is essential to file proofs of claim using the appropriate forms and guidelines. These claims must be submitted in English, denominated in U.S. dollars as of the petition date, and include detailed documentation. 

The procedures for filing claims are explicitly stated requiring submission either electronically via the Epiq website or by mail to Epiq Corporate Restructuring, LLC.

If the proof of claim is not filed by the stipulated time, there could be dire consequences such as the forfeiture of voting and distribution rights in the Chapter 11 cases. Also, the notice mentions that the plan does not cover the “Excluded Crypto Claims” which are the claims for digital assets linked with the Debtors and their related companies. 

Final Thoughts

The actions of Terraform Labs regarding the declaration of the deadline for the bankruptcy claims have elicited different responses among the crypto community. LUNC and USTC holders and investors in Terra’s digital assets look at this as a possible key determinant of the future value and stability of these tokens. The recent hike in LUNC price to nearly $0.000080 mark underlines the market’s bullishness. 

This development also underlines some of the issues that are related to the bankruptcy processes of blockchain companies and the legal status of digital assets. Holders of "Excluded Crypto Claims" are advised to stay vigilant for upcoming deadlines and updates from Terraform Labs.

Overall, the announcement sets the stage for a possible bullish momentum for LUNC and USTC, as it could restore some of the network's lost credibility. The next few months will be crucial for the stakeholders as they navigate this significant phase in Terra's journey.

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