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Home > Information > News

US PHA producer Danimer files for bankruptcy

Degradable and Recyclable Center 2025-03-20 09:13:35
On March 14, Danimer Scientific, Inc. submitted a WARN notice indicating the closure of its manufacturing plant in Bainbridge, Georgia, and the layoff of all 82 employees there. Among them, 40 were laid off on that day.
Officially, the closure is due to Danimer experiencing "unprecedented liquidity shortages, and the company's cash position being extremely low, which led to the company's failure to pay certain amounts of its existing debts and hindered the company's ability to continue operations."
On March 18, Danimer Scientific, Inc. and its subsidiaries voluntarily filed for Chapter 11 protection with the U.S. Bankruptcy Court for the District of Delaware.
The company reported assets of $622.5 million and liabilities of $449.5 million. The document indicates that after paying administrative expenses, there will be no funds available for distribution to unsecured creditors.

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.

 

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