Cereplast Files For Bankruptcy

Bioplastics compounder Cereplast has filed for Chapter 11 bankruptcy protection. The company blames a lack of demand for bioplastics in the U.S., the lack of regulatory support for bioplastics in Europe, and disputes with creditors. One of the company’s lenders, Horizon Technology Finance, gave notice to Cereplast in January that it would sell Cereplast’s assets over a default on a $2.8 million loan. For the first nine months of 2013, Cereplast lost $34.0 million on $2.1 million in sales. Cereplast was founded in 2001 to compound biobased and compostable resins such as polylactic acid. Recent years have seen it delisting from the NASDAQ stock exchange, backing off expansion plans, and issuing new shares.