US-based chemical recycling company Brightmark has filed for bankruptcy for three subsidiaries associated with its Ashley, Indiana pyrolysis plant. The affected entities are Brightmark Plastics Renewal LLC, Brightmark Plastics Renewal Indiana, and Brightmark Plastics Renewal Services LLC. According to court filings in the United States Bankruptcy Court for the District of Delaware, these subsidiaries are burdened with approximately $178.35 million in secured debt. This includes $172.5 million in green bonds, with a missed bond payment of $12.9 million on March 1. Additionally, there is an outstanding bridge loan of $5.585 million issued on March 5.

The subsidiaries also disclosed around $1.81 million in unsecured debt. The Ashley pyrolysis plant is currently operating at only 5% capacity and is failing to generate enough revenue to support operations. Court documents reveal that the so-called "Circularity Centre" requires monthly funding between $3.5 million and $4 million to sustain operations and reach full capacity.

Brightmark began constructing the Ashley plastics-to-fuel plant in 2019, with the goal of converting roughly 100,000 tons of plastic waste into over 18 million gallons of ultra-low sulphur diesel and naphtha blend stocks, along with nearly 6 million gallons of wax annually. However, as of 2023, the plant had processed only about 2,000 tons of plastic waste.

Brightmark has filed motions seeking permission to continue operating during the bankruptcy process and plans to pursue an auction and sale process for the Ashley facility. The company has also committed to providing ongoing financing to ensure liquidity for day-to-day operations at the plant. Importantly, Brightmark has assured that the bankruptcy proceedings will not affect the employment of Ashley's more than 90 staff members.

"Today’s filing allows us to take control of our future," stated Brightmark Founder and CEO Bob Powell. "This strategic decision is designed to secure the long-term stability of the Ashley facility and support our broader business growth. Our commitment to the Ashley community remains steadfast."

The bankruptcy filing is limited to the Ashley facility and does not extend to Brightmark's other business operations. The company highlighted that progress continues on its new Circularity Centre in Thomaston, Georgia, which was announced in 2024. The Georgia facility is projected to handle over 400,000 tons of plastics annually, with an estimated construction cost of $950 million. Brightmark will soon complete air permit filings as part of the project's next phase.

"We are optimistic about the future of the Thomaston facility and its significant role in our plastics business," Powell added. "We look forward to deepening our partnership with the Thomaston community."

Brightmark’s proprietary pyrolysis technology converts end-of-life plastics, including hard-to-recycle items such as plastic film, flexible packaging, styrofoam, and children’s toys, into petrochemical feedstocks like ultra-low sulphur diesel, naphtha, and wax for commercial and industrial use.