On November 08, 2022 Fast Radius PTE. LTD. filed for chapter 11 protection in the District of Delaware (Case No. 22-11053). The Petition states funds will be available to Unsecured Creditors.
R. Craig Martin
DLA Piper LLP (US)
CHICAGO, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Fast Radius, Inc. (Nasdaq: FSRD) (“Fast Radius'' or the “Company”) announced today that it is launching an in-court process to effectuate one or more strategic transactions and has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.
The Company has requested that the court establish certain sale and marketing procedures, which include a proposed bid deadline of December 5, 2022. The Company is in active discussions with one or more potential partners and continues to explore and evaluate strategic alternatives.
“Fast Radius has invested over $200 million creating a first-of-its-kind Cloud Manufacturing Platform. Like cloud computing, we provide a platform of software tools and manufacturing solutions to help engineers design and make commercial grade parts for a $360 billion market. We have served over 2,000 manufacturing customers and 23,000 software users since 2020,” said Lou Rassey, CEO and Co-Founder of Fast Radius. “We thank our suppliers and partners for their continued support through this process. We also thank our team members for their continued commitment and dedication to serving our customers.”
Fast Radius will continue to operate its business as a “debtor-in-possession” under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the U.S. Bankruptcy Code. The Company has filed customary motions requesting that the court authorize the Company’s ability to use cash on hand and operating cash flows to support its continued operation throughout this process, including payment of employee wages and benefits without interruption. The Company intends to pay suppliers and vendors in full under normal terms for goods and services provided on or after the filing date. Fast Radius expects to operate without interruption, including providing customers with the same high-quality products and services they expect and continued partnerships with its valued suppliers.
“Every year since our founding, Fast Radius has grown our revenue, expanded our customer base, and extended our service offerings. However, recent headwinds in the capital markets have inhibited our ability to adequately put in place the capital structure needed,” shared Rassey. "Our Board has deemed this filing an appropriate next step. We continue to have conviction on the importance of innovation in manufacturing and the potential for our Cloud Manufacturing Platform."
Court filings and other information related to the proceedings are available on a separate website administered by the Company's noticing agent, Stretto, at https://cases.stretto.com/fastradius or by calling Stretto representatives toll-free at 1-877-361-4291 or 1-714-384-7055 for calls originating outside of the U.S.
DLA Piper LLP (US) is serving as legal advisor to the Company, Lincoln International is serving as its investment banker, and Alvarez & Marsal is serving as its financial advisor. Interested parties may contact Lincoln International for additional information at firstname.lastname@example.org.
The Company anticipates that its common stock and warrants will be delisted from the Nasdaq Stock Exchange and will be eligible to be quoted on either the OTC Bulletin Board or Pink Sheets. No assurance, however, can be made that trading in the Company's common stock and warrants on the OTC Bulletin Board or "Pink Sheets” will commence or be maintained.
In light of the bankruptcy filing, the Company will not conduct its Q3 2022 quarterly earnings call.