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TRI wants protections in Fulcrum BioEnergy asset sale

ThermoChem Recovery International filed a limited objection in the Fulcrum BioEnergy bankruptcy case, asking for additional protections of its proprietary data and technology in the proposed asset sale.

ThermoChem Recovery International, Inc. (TRI) has filed a limited objection to the sale of Fulcrum BioEnergy, Inc.’s Sierra Plant to Switch, based on concerns about protecting its proprietary technology and data.

TRI asserts that the Sierra Plant, which is intended for sale, includes TRI equipment and proprietary data designed for waste-to-fuel conversion. However, Switch, the buyer, plans to repurpose the facility for data center operations, not utilizing TRI’s technology. TRI argues that this change in use does not justify including their proprietary data and specific technology in the sale.

Switch, a data center developer backed by DigitalBridge Group and IFM Investors, has entered a stalking horse bid to buy the Fulcrum Sierra Biofuels assets, which filed for Chapter 11 in September. Switch was taken private in 2022 at a valuation of $11bn.

The $15m stalking horse bid represents a near-total wipeout of Fulcrum’s $456m pre-petition capital structure, which included investors like SK, bp, and Marubeni, among others.

This “TRI Proprietary Data” includes drawings, operating procedures, calculations, and training materials, all fundamental to the successful use and maintenance of TRI’s technology. 

If a different buyer besides Switch were to purchase the plant or include other assets, TRI would maintain these objections to protect their rights. TRI also reserves the right to object to any assignment of agreements related to TRI’s intellectual property.

TRI proposes that the sale order explicitly exclude its proprietary data and technology, allowing for either the return or destruction of relevant materials.

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