Brightmark Plastics Renewal LLC, a recycling plant in Indiana that used funds from municipal bond investors six years ago, has filed for bankruptcy due to operational challenges and limited production output. The facility, which converts waste plastic into fuel, sought Chapter 11 protection, revealing assets and liabilities ranging between $100 million and $500 million. Despite employing 113 individuals and having $172.5 million in outstanding municipal bonds, the plant missed a $13 million debt payment in March, prompting its owner, Brightmark Energy, to cease further investments in the venture. Facing financial struggles, the company's bonds were trading at around 16 cents on the dollar in February 2019.

The bankruptcies of recycling projects in the US have become common due to various issues such as poor demand and escalating production expenses, with approximately $1 billion of the $9.3 billion green municipal industrial development bonds now in default.

Situated in Ashley, Indiana, the Brightmark plant processes plastic waste into fuel through a pyrolysis method. The bankruptcy filing aims to secure the future of the facility and the company's commitment to its plastics business and community. Notably, the founder and CEO, Bob Powell, expressed optimism about the future of their operations and reassured that the Ashley facility will remain operational through debtor-in-possession financing provided by Brightmark and a bridge lender. Despite encountering setbacks, including design flaws and low production capacity, the company remains determined to sustainably grow its business and uphold its dedication to the Ashley region.