Electronic inks firm Plextronics filed for Chapter 11 bankruptcy in the US on 16 January, following the failure of a move to secure extra investment in late 2013. Global chemicals firm Solvay, which led the original consortium which financed the setting up of the company, has emerged as the leading candidate to buy it out.
The bankruptcy notification estimates that Plextronics currently has liabilities of $10-50 million (€7-36 million) including debts to plastic electronic development partners like Holst Centre. In October, Plextronics sought to guarantee its short-term future by raising an extra $5 million through debt-based securities, but was able to raise less than a fifth of this figure.
The company was founded in 2007 and has developed a series of conductive inks intended for use in OLED screens, lighting and solar power applications under the Plexcore brand.
Solvay America has now come forward as a stalking horse bidder, who will make an initial bid to buy out all of Plextronics assets in a deal that would likely be completed by 1 April 2014. Richard McCullough, chairman of Plextronics says: 'The Board and management team have conducted a rigorous assessment of all of our strategic options and concluded that this process represents the best possible solution for Plextronics to help unlock the value of Plexcore inks.'
Plexcore and the company's other products will still be available as it continues to trade pending a decision on the eventual sale, which is being overseen in the US Bankruptcy Court for the District of Delaware.
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