Former Loot Crate grants $2.33 million claim in revenue sharing deal

By Caroline Salls

Pittsburgh, Nov. 18 – Old LC, Inc., formerly Loot Crate Inc., requested court approval of a settlement reached with Clear Finance Technology Corp., which does business as Clearbanc, and Clearfund I. LP, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The company said in the motion that Loot Crate and Clearbanc are parties to pre-bankruptcy revenue share agreements.

Under the agreements, Clearbanc paid Loot Crate in return for an interest in Loot Crate’s future revenues and collections.

Old LC said Loot Crate originally thought the share agreements would require litigation to resolve, but the parties ultimately decided Clearbanc’s rights under the share agreements would be treated as a claim.

Under the proposed settlement, Clearbanc will have a $2.33 million allowed general unsecured claim against the Loot Crate bankruptcy estate, representing the amount of the outstanding balance under the share agreements as of Loot Crate’s bankruptcy filing date.

A hearing is scheduled for Dec. 3.

Los Angeles-based Loot Crate sells pop culture subscription boxes. The company filed bankruptcy on Aug. 11 under Chapter 11 case number 19-11791.

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