Fast Radius creditor committee seeks authority to handle SVB claims

Chicago, Dec. 29 – The official committee of unsecured creditors for Legacy RSRD, Inc.’s, formerly Fast Radius, Inc., Chapter 11 case filed a motion for an order to commence, prosecute and settle claims against SVB Innovation Credit Fund VIII, LP, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee has identified several categories of assets that are not subject to SVB Capital’s pre-petition liens, yet Fast Radius has validated SVB’s claims and absent a challenge by the committee SVB will receive payments for which it is not entitled.

To preserve value for the debtors’ unsecured creditors, the committee seeks authority to pursue a challenge to the prepetition liens on the assets. Otherwise, SVB will receive nearly all of the proceeds from the asset sale and the unsecured creditors will receive nothing.

The committee specifically seeks to avoid the prepetition liens on all assets acquired by Fast Radius after June 4 (including accounts receivable), any commercial tort claims and the proceeds from the tort claims or any equipment subject to an equipment lease.

The collateral challenged in the complaint includes $7.16 million in accounts receivable held by Fast Radius as of the petition date, with $6.94 million of that amount as accounts receivable that were 90 days old or less as of the petition date.

The collateral also includes four real property leases, office equipment and machinery, fixtures and equipment with an undetermined value.

Finally, the dispute involves transfers that may be subject to preference claims, including $12.5 million made by Fast Radius in the 90 days before the petition date, including over $5.2 million to SVB Capital. The debtors also list over $5.8 million in payments made to insiders in one year preceding the petition date.

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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