Indiana recycling plant files for Chapter 11 bankruptcy

An Indiana recycling plant has filed for bankruptcy due to ongoing production issues and design flaws. Brightmark Plastics Renewal LLC, which turns waste plastic into fuel, submitted its Chapter 11 filing on Sunday. The plant has between $100 million and $500 million in assets and liabilities. The facility, located in Ashley, Indiana, employs 113 people and owes $172.5 million in municipal bonds. Brightmark missed a $13 million debt payment due on March 1, which prompted the bankruptcy filing. The plant's owner, Brightmark Energy, had invested over $211 million but decided it could not continue funding the project. The recycling plant has struggled with production since it opened in 2022. It was designed to process 100,000 tons of plastic waste annually but is currently running at only 5% of its capacity. Problems included the need for significant redesign and non-functional equipment necessary for oil processing. Brightmark plans to sell the facility and has secured financing to keep it operational during the sale. The company believes there is demand for its product, which utilizes approximately 60% post-consumer plastic waste instead of traditional fossil fuels.