Desktop Metal files for Chapter 11 bankruptcy, plans asset sale to Anzu
Desktop Metal, Burlington, Massachusetts, has filed for Chapter 11 bankruptcy. While the filing means that the company is unable to meet contractual obligations regarding services or pay, Desktop Metal will retain control of its business operations while it undergoes reorganisation, including a planned sale of its subsidiaries.
In court documents, the company disclosed assets and liabilities in the range of $100-500 million. In his role of Chief Restructuring Officer, Andrew Hinkelman of FTI Consulting will work with Desktop Metal as it reorganises.
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The company is in discussions to sell a number of its foreign subsidiaries – ExOne GmbH, EnvisionTEC GmbH, ExOne KK, and AIDRO srl – to an affiliate of Anzu Partners. If the court-supervised process goes through, the sale will go towards repaying part of Desktop Metal’s debts, thus stabilising the remaining corporate structure.
Following Desktop Metal’s announcement, Nano Dimension – which recently acquired the company – clarified that the decision was made by Desktop Metal’s independent Board of Directors. Ofir Baharav, Nano Dimension’s CEO, commented, “We are safeguarding our financial strength and preserving our position as the best capitalised company in our ecosystem. This is what enables the company to pursue strategic opportunities from a position of maximum strength—and that is exactly what the company’s shareholders should expect from us.”
www.desktopmetal.com
www.nano-di.com
