Information for Creditors of Fast Radius, Inc.
Jointly Administered Under Case Number 22-11052 in the United States Bankruptcy Court for the District of Delaware
THE JOINTLY ADMINISTERED DEBTORS
- Fast Radius, Inc.
- Fast Radius Operations, Inc.
- Fast Radius PTE, LTD.
Together, the three Debtor companies do business as “Fast Radius”. Fast Radius was originally founded in 2017 and is headquartered in Chicago.
The Debtors’ bankruptcy papers state “Fast Radius’ vision is to build a new infrastructure to design, make, and move physical products more efficiently, more sustainably, with access for all.” They describe Fast Radius as “a first-of-its-kind cloud manufacturing and digital supply chain company.”
Essentially, the Fast Radius family of companies is a cloud manufacturing platform that includes software and a network of factories to help manufacturers design, make and fulfill custom made parts.
The Fast Radius, Inc Debtor is a publicly traded company (Nasdaq: FRSD).
FAST RADIUS SAYS IT WILL RUN OUT OF CASH WITHOUT A SALE
The papers that initiated the Debtors’ bankruptcy cases indicate that they have approximately $69 million in assets as compared to $55 million in liabilities. Included in those liabilities are creditors that number in the thousands.
A liquidity crisis led the Fast Radius companies to file for bankruptcy. According to the Debtors’ papers, Fast Radius has never been profitable. It has accumulated deficits of $215.1 million and $123.5 Million as of June 30, 2022 and December 31, 2021, respectively. In addition, although Fast Radius anticipated a $300 million to $450 Million cash inflow in February 2022 through a business combination, the combination only resulted in $73 million on a net basis after shareholder redemptions.
In September 2022, Fast Radius began owning monthly principal payments to its secured lender. Fast Radius made nearly $5 Million in monthly amortization payments in September and October 2022. While recent reductions in workforce have cut costs, Fast Radius has paid $300,000 in June 2022 and another $300,000 in November 2022 in prepetition severance to eligible employees.
Fast Radius reports that as of the petition date (November 7, 2022), Fast Radius has $6.2 million in available cash.
THE SALE OF FAST RADIUS
The Debtors have indicated that they need urgent permission from the Court to conduct an expedited sale. The Debtors have requested that the Bankruptcy Court establish certain sale and marketing procedures, which include a proposed bid deadline of December 5, 2022. The pleadings indicate the Debtors are in active discussions with one or more potential partners.
On the other hand, creditors of Fast Radius should be paying close attention to this case to see that some of the sale proceeds are allocated to the unsecured creditors.
Given that the Debtors hope to complete their sale no later than December 12, 2022, creditors must act fast if they hope to improve their position in this case. If you have questions about this case or a bankruptcy sale process in general, please feel free to reach out to PRLT.
PRLT does not represent Fast Radius, Inc. or any of the affiliated Debtors. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Fast Radius jointly administered bankruptcy case or anything discussed on this page, please contact us.