- The United States Bankruptcy Court for the District of Delaware has mandated that stakeholders of Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL) must submit their preliminary Crypto Loss Proofs of Claim by August 21, 2024, at 5:00 PM (ET).
- This crucial filing determines eligibility for voting on the Chapter 11 plan but does not address the eventual distribution of claims, which will be resolved at a later stage in the bankruptcy proceedings.
- Stakeholders are advised to act promptly to ensure their participation, given that the court’s stipulations apply to claims against TFL arising before January 21, 2024, and TLL prior to July 1, 2024.
Essential deadlines and instructions prompt stakeholders to act to safeguard their voting rights in the Terraform Labs bankruptcy case.
Deadline to File Preliminary Crypto Loss Claims
Stakeholders with claims originating before the defined dates must file by the stipulated deadline to secure their role in the Chapter 11 voting process. The court has emphasized that this filing is strictly to establish voting eligibility and does not affect the overall claims distribution, which will be handled later in the proceedings.
Specific Instructions for Filing Claims
Claims must be submitted through the official website of Epiq Corporate Restructuring, LLC, or sent by hand or mail to designated addresses. It is mandatory for claims to be in English, valued in US dollars as per the petition date, and signed under penalty of perjury.
Detailed Criteria for ‘Crypto Loss Claims’
A Crypto Loss Claim includes claims against the Debtors related to various transactions involving the Terra ecosystem’s crypto assets, including wrapped, bridged, staked, bonded versions, and derivatives or swaps of these crypto assets.
Eligibility Requirements for Voting on the Chapter 11 Plan
All individuals or entities holding Crypto Loss Claims against the Debtors before the petition dates must file a claim if they wish to vote on the Chapter 11 plan. Exemptions exist for stakeholders who have already submitted a similar form, whose claims have been fully paid, or who do not wish to vote on the plan.
Importance of Timely Filing
Failure to submit a Preliminary Crypto Loss Proof of Claim by August 21, 2024, will preclude stakeholders from participating in the Chapter 11 plan vote. However, it will not prevent them from filing claims for future distributions under the confirmed plan, emphasizing the necessity of adhering to procedural requirements in the bankruptcy cases.
Conclusion
Stakeholders must act swiftly to uphold their voting rights in the Terraform Labs Chapter 11 case. The structured filing process reinforces the importance of adhering to deadlines to ensure participation in the decision-making aspects of the bankruptcy proceedings. While this preliminary filing is solely for voting purposes, stakeholders retain the right to claim future distributions, highlighting intricate procedural aspects inherent in such financial restructurings.
