CalPlant Enters into Plan Support Agreement, Files for Chapter 11 Bankruptcy while Pursuing Sale of the Company

CalPlant I, LLC (“CalPlant” or the “Company”), a Northern California-based company focused on manufacturing sustainably sourced building products — including the creation of the world’s first no-added-formaldehyde, rice straw-based medium density fiberboard, Eureka™ MDF — today (10-5-21) announced it has entered into a Plan Support Agreement (the “PSA”) with its senior bondholders, while pursuing a sale of the Company.

The PSA provides for a comprehensive financial restructuring of the Company’s debt and the investment resources to complete the commissioning of the Company’s manufacturing facility, and first ever rice straw based MDF.

To facilitate the sale process and implement the PSA, the Company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.

The Company will continue to operate in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations throughout the restructuring process. The Company has secured commitments for up to $30.1 million in Debtor-in-Possession (DIP) financing from certain of the Company’s senior bondholders to support the business during the Chapter 11 process.

Subject to court approval, CalPlant estimates that substantially all trade vendors who will have an ongoing business relationship with the Company will be paid for goods and services in the normal course of business without interruption.


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Original Source:
CalPlant, Bondholders Implement Value-Maximizing Sales Process by Key Restructuring