Fast Radius files Chapter 11 post-SPAC with $55 million of liabilities

Chicago, Nov. 8 – Fast Radius, Inc. filed a voluntary Chapter 11 bankruptcy petition on Monday in the U.S. Bankruptcy Court for the District of Delaware.

The company has selected DLA Piper LLP (US) as its proposed counsel.

In the petition, the company listed $69.33 million in assets and $55.21 million in liabilities.

The top unsecured claims are all trade claims. The largest unsecured creditors are Palantir Technologies Inc. with a $2.91 million claim, United Parcel Service General Services Co. with a $1.5 million claim, Russel Precision & Solution with an $888,365 claim and Jasonmould Industrial Co., Ltd. with a $485,048 claim.

In terms of equity interests, the second claimant United Parcel has an 18.3% equity interest in Fast Radius.

Funded debt includes two instruments for $7.4 million and $16.5 million from Silicon Valley Bank.

Background

Fast Radius went public through a “de-SPAC” transaction in February.

The growth company had anticipated raising between $300 million and $445 million in the going-public transaction but only took in approximately $106 million, with $6 million of that coming from retail investors.

The company expected the funding to last through the end of the year, but immediately started exploring other ways to raise incremental capital.

A potential buyer came forward in October but walked away on Nov. 6.

Termination of the exclusivity arrangement with the potential buyer triggered a default under the company’s prepetition loan agreements.

The company is setting out an immediate launch of a sale process and hopes for approval of bidding procedures by Nov. 14. The company would like to designate a stalking horse bidder by Nov. 23, an auction by Dec. 7 and a target closing date of Dec. 12.

The company had been exploring a sale for months before it filed bankruptcy.

The company made various first-day motions.

This included access to cash collateral with interests in the collateral from parties Silicon Valley Bank and SVB Innovation Credit Fund VIII, LP.

On the petition date, the company reported having $6.2 million of cash on hand.

The company has also used the name ECP Environmental Growth Opportunities Corp. The cloud manufacturing and digital supply chain company filed bankruptcy on Nov. 7 under case number 22-11051.

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