Former Fast Radius gets nod for creditor vote following settlement

By Sarah Lizee

Olympia, Wash., Jan. 13 – Legacy FSRD, Inc., formerly Fast Radius, Inc., is set to begin soliciting votes on a combined disclosure statement and Chapter 11 plan from U.S. Bankruptcy Court for the District of Delaware following a hearing held Friday.

The court set a Feb. 22 combined hearing on final confirmation of the plan and disclosure statement.

The debtors recently amended the plan to reflect a global settlement reached with the official committee of unsecured creditors and secured creditor SVB Capital following weeks of negotiations.

As part of the deal, $750,000 in cash is being made available to general unsecured claims. The amount is funded in two parts – $550,000 is from the collateral of SVB Capital, and the remaining is coming from debtor parties.

Now, the $21 million to $24 million of class 5 general unsecured claims are expected to receive a recovery of around 6% to 8%. Previously, this class was set to receive less than 1% recovery under the plan.

SVB Capital has agreed to waive its entitlement to any of the $750,000. For anything above that amount, SVB would share pro rata in the pool. However, the debtors do not anticipate there will be anything more than the $750,000.

On the effective date, SVB Capital will receive the prepetition lender distribution with respect to cash then available after giving effect to the above reserves, including the $2.1 million of cash presently held in escrow under a sale order. The prepetition lender distribution will also include the cash proceeds from the sale of equipment.

SVB Capital will be allowed, and entitled to vote on, $5.1 million of its asserted claims as secured claims, and $11.6 million of its asserted claims as general unsecured claims. This results in a roughly 31% recovery on SVB Capital’s $16.7 million of asserted secured claims.

SVB Capital will also be deemed to have held valid liens to the extent set forth in the final cash collateral order.

Each of the global settlement parties will be included as a released party and a releasing party.

Holders of other secured claims, other priority claims, and the roughly $7.9 million of class 3 SVB secured claims are projected to receive 100% recovery.

Intercompany claims and interest will be reinstated or canceled with no distribution.

Interest holders will also receive no distribution.

Only holders of class 4 SVB Capital secured claims and general unsecured claims are entitled to vote on the plan.

As previously reported, the company gained court approval to sell most of its assets to SyBridge Digital Solutions LLC for a headline value of nearly $17 million.

Also previously reported, the creditor committee had filed a motion late last month to handle SVB’s claims. Counsel for the committee said at the Friday hearing that, rather than withdraw the motion, the committee would adjourn it, in case the settlement fell through for any reason.

The deadline to vote on the plan is set for 4 p.m. ET on Feb. 14.

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

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