Terraform Labs Reveals Bankruptcy Hearing Date, LUNC Price Spikes

Terraform Labs (TFL), the company behind Terra ecosystem, disclosed its Chapter 11 bankrupcy hearing date on Wednesday. TFL confirms that the Chapter 11 bankruptcy hearing to commence in mid-September. Traders reacted immediately expecting LUNC and LUNA prices to recover significantly amid the announcement.

Terra Bankruptcy Hearing Set For September 19

On August 21, Terra took to X to disclose the Plan Confirmation Hearing of the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL). The hearing is scheduled to happen on September 19 at 10:00 AM ET.

This marks an important step in the bankruptcy reorganization plan of Terraform Labs. Moreover, the deadline to file their Preliminary Crypto Loss Proof of Claim forms is today, August 21. This submission is crucial to the creditors who want to exercise their right in voting for the proposed Chapter 11 Plan.

Terraform Labs filed for Chapter 11 bankruptcy in January and reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) in June.

The Bankruptcy Court for the District of Delaware recently approved TFL proposed plan. Terra plans to reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic. The firm will also burn LUNA ecosystem tokens in TFL and Luna Foundation Guard (LFG) wallets.

This will also allow users to redeem wrapped assets from the bridge wallets within 30 days, the unclaimed crypto assets will be burned. TFL CEO Chris Amani earlier confirmed to burn LUNC and USTC assets.

How LUNC and LUNA Price Will React?

LUNA and LUNC prices are expected to rebound as the firm will burn tokens in Terraform Labs and LFG wallets. This has also caused crypto exchanges such as eToro and Gemini to delist affected crypto. Investors are withdrawing tokens from exchanges and staking them.

LUNA price jumped 3% after the announcement, with the price currently at $0.342. The 24-hour low and high are $0.3248 and $0.3436, respectively. Moreover, trading volume has increased by 10%, indicating interest among traders.

Meanwhile, LUNC price climbed 3.84% to $0.00008473 from a 24-hour low of $0.00007917. The 24-hour trading volumes also saw an increase in the last 24 hours, indicating a rise in interest among traders.

Moreover, LUNC and 1000LUNC futures open interest saw massive buying, indicating bullish sentiment among derivatives traders, as per Coinglass data.