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The U.S. Internal Revenue Service on Tuesday sued the Federal Deposit Insurance Corporation, asking a judge to determine how much the FDIC must pay to cover an estimated $1.45 billion tax debt owed by the failed Silicon Valley Bank, Reuters reported. The FDIC, which seized SVB and its assets in March 2023, has denied the entire tax claim, according to a complaint filed in federal court in Washington. The IRS said the court should overrule the FDIC's decision to deny the tax claim, and make a new determination on the validity and amount of taxes owed. The FDIC is acting as a receiver for the bank, gathering the bank's assets and using them to repay SVB's creditors. The IRS said that its initial $1.45 billion claim was an estimated total for taxes due between 2020 and 2023, and that it was still reviewing SVB's tax returns when it filed the claim. The IRS later learned that some of the employment taxes included in its claim have already been paid. The IRS and the FDIC did not immediately respond to requests for comment on the dispute. Santa Clara, California-based SVB became one of the largest bank failures in U.S. history when it collapsed on March 10, sending shockwaves through the regional banking industry in the U.S. and disrupting many tech startups that housed their cash at the bank. The FDIC has also been sued by SVB Financial, SVB's former parent company, over its seizure of $1.93 billion in cash during its takeover of the bank.

Instant Brands, maker of the Instant Pot pressure cooker and Pyrex glassware, received court approval on Tuesday to borrow an additional $30 million to fund itself through bankruptcy, Bloomberg News reported. The company has been negotiating with vendors critical to the production of its hallmark kitchen gadgets, and the talks made clear that Instant Brands needed additional money, according to company attorney Brian Resnick. The company has already spent $132.5 million of bankruptcy financing secured at the start of its chapter 11 case, according to court papers. “It became apparent as these negotiations proceeded that the debtors would need additional financing to honor the agreements and in order to maintain a stable business,” Resnick said in a bankruptcy hearing Tuesday. Meanwhile, the manufacturer is in the throes of soliciting interest from potential bidders to sell some or all of its assets. The bid deadline is September 7.