Seymour, IN-based Cereplast, a manufacturer of proprietary biobased, compostable bioplastics, has announced that the company has filed voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Indiana. According to its press release, the company has "taken this action to strengthen its balance sheet, clean up its capitalization structure and gain financial flexibility as it continues to realign its operations."
The company said that it intends to continue to operate during the reorganization process.
As part of the reorganization, Cereplast is taking steps to align its cost structure with the realities of market demand. The company expects to redirect its operations in two directions: (1) toward traditional compounded products and recycling polyolefin and (2) bioplastic made of diversified feedstock including algae and polylactic acid.