US-based chemical recycler Brightmark has filed for bankruptcy of certain subsidiaries related to its pyrolysis plant in Ashley, Indiana, under Chapter 11 of the US Bankruptcy Code.
The subsidiaries are Brightmark Plastics Renewal LLC, Brightmark Plastics Renewal Indiana, and Brightmark Plastics Renewal Services LLC, documents from the United States Bankruptcy Court for the District of Delaware reveal.
Case documents show the debtors owe approximately $178.35 million in secured debt. This includes $172.5 million in green bonds. Brighmark defaulted on a bond payment worth $12.9 million on March 1.The debt also includes $5.585 million for a bridge loan issued on March 5.
The chemical recycling subsidiaries estimate their additional unsecured debt amounts to around $1.81 million.
The bankruptcy filing reveals the Ashley pyrolysis plant is only operating at 5% capacity and ‘does not generate sufficient revenue to fund the Debtors’ operations’, court documents read.
The so-called Circularity Centre requires approximately $3.5 million to $4 million per month to fund operations and improvements to reach nameplate capacity.
Brightmark started building the Ashley plastics-to-fuel plant in 2019. It planned to convert around 100,000 tons of plastic waste into over 18 million gallons a year of ultra-low sulphur diesel and naphtha blend stocks, and nearly 6 million gallons a year of wax. As of 2023, the plant had processed around 2,000 tons of plastic waste.
Brightmark has filed motions to continue operations during the proceedings and to pursue an auction and sale process.
Brightmark LLC intends to provide continued financing to allow the Ashley facility to have sufficient liquidity to maintain day-to-day operations. At this point, the company does not expect the bankruptcy to impact on the employment of the more than 90 employees in Ashley.
“Today’s filing allows us to take control of our future,” said Brightmark Founder and CEO, Bob Powell. “This strategic move is designed to ensure the long-term viability of the Ashley facility and enables us to grow our business sustainably. We are excited about the future of our plastics business, and our commitment to it and the Ashley community is unwavering.”
The filing is specific to the Ashley facility and does not affect other parts of Brightmark’s business. Brightmark said it continues to make progress on the development of its Circularity Centre in Thomaston, Georgia, announced in 2024.
The Georgia facility is expected to process more than 400,000 tons of plastics each year. The estimated total price tag is $950 million.
Brightmark said it will will next complete the filings necessary for the air permit process for the facility.
“We are optimistic about the future of the Thomaston facility and believe it will play a crucial role in our overall plastics business,” said Powell. “We look forward to our continued partnership with the Thomaston community.”
Brightmark’s proprietary technology is based on pyrolysis and converts end-of-life waste plastics otherwise destined for incineration, landfill, or export, into petrochemical feedstocks - commercial grade ultra-low sulphur diesel, naphtha, and wax - for plastics and other industrial applications.
According to Brightmark, unlike similar technologies, its process accepts co-mingled, single-stream plastics, includes items not currently recyclable via conventional mechanical processes such as plastic film, flexible packaging, styrofoam, plastic beverage cups, car seats and children’s toys.