- Terraform Labs has made progress in its restructuring plan.
- The TerraUSD creator filed for bankruptcy in January.
- The company has planned two events as critical steps to emerge out of Chapter 11.
On Friday, Terraform Labs (TFL) informed its community about a recent bankruptcy court order authorizing the company to take certain steps in its restructuring plan, including reopening the Shuttle Bridge and burning millions of LUNA.
TFL filed for bankruptcy protection in the U.S. in January this year, almost two years after the company’s stablecoin, TerraUSD, collapsed, losing 99% of its value in just 48 hours. In the court filing, Terra said it would meet all monetary obligations to employees and vendors without requiring additional financing.
Shuttle Bridge Reopening and LUNA Burn
In an X (Twitter) post, Terraform Labs said it would reopen the Shuttle Bridge for the redemption of wrapped assets on Terra Classic as part of the court’s directive. Users will have a 30-day window to redeem their wrapped assets from the bridge after Terra’s bankruptcy plan becomes effective.
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“After that time, TFL intends to permanently shut down the Shuttle bridge and any remaining assets will be burned. TFL’s proposed chapter 11 plan has not yet been approved by the bankruptcy court and is not anticipated to go effective until late September 2024, at the earliest,” the post read.
TFL will also undelegate and burn 150 million LUNA in compliance with the settlement it reached with the U.S. Securities and Exchange Commission (SEC). The tokens earmarked for destruction include 125 million LUNA staked by 49 validators and 25 million LUNA meant for liquidity provisioning.
Per the post, “no action is required” from previous Shuttle Bridge users for now.
Read about Do Kown’s alleged escape plan to Montenegro before Terra-Luna collapse:
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