While gradually shutting down operations, it will seek to run the business and manage assets as a debtor. The company said it plans to retain the option to sell its manufacturing facilities.

Danimer will seek the bankruptcy court's approval to obtain a new $1 million loan on an interim basis as debtor-in-possession (DIP) financing, and up to a total of $3 million in loans upon final approval. Additionally, the company also seeks to roll up $12 million from existing super-priority unsecured promissory notes into the DIP facility upon the effectiveness of the final DIP order.

The loan proceeds will be used to maintain Danimer's business and fund the Chapter 11 case. Danimer plans to use the loan proceeds to pay the wages of remaining employees, meet working capital needs, and gradually wind down operations.

Danimer Scientific, founded in 2004 and headquartered in the United States, is a company that leads in creating eco-friendly, natural alternative solutions for traditional petroleum-based resins. The company's signature polymer Nodax™ PHA (polyhydroxyalkanoates) is 100% biodegradable, renewable, and sustainable plastic produced using canola oil as the primary raw material. Danimer is one of the companies with the largest global PHA production capacity.