ECO2 Plastics Inc., which owns technology for cleaning and shredding plastics for recycling, filed a Chapter 11 petition late last month.
The company, based in Menlo Park, Calif., patented the plastics recycling process in 2007. The demonstration plant was closed while plans were in the works for building another.
The company cited inability to obtain additional financing or investments as the reason for filing Chapter 11. The petition listed assets of $1.7 million and debt of $6.4 million.
In filing protection, the company noted that it had taken significant efforts to reduce its expenses including ceasing operations at its former production facility while pursuing plans to develop a new production facility.
“We believe that chapter 11 is necessary to restructure the company's outstanding debt, and establish a sustainable, long-term capital structure for the business," said Rod Rougelot, CEO. "While we have worked tirelessly during the past several months to develop our new production facility plans, address our existing financial obligations and seek further funding, the company has concluded that it will be unable to secure the financing it requires in the absence of a chapter 11 filing that will clean up the company’s balance sheet."