Before even reaching full production capacity, CalPlant, the world's first facility set to turn post-harvest rice straw waste into Eureka MDF, a medium-density fiberboard with no added formaldehyde, has filed for Chapter 11 bankruptcy in federal court in Delaware.
The $400-million project on 276 acres in Willows, Calif., required decades of engineering work and financing guarantees to move its four-year construction toward commissioning in March 2020, when the COVID-19 pandemic began. But CalPlant entered into a voluntary Plan Support Agreement with its senior bondholders while pursuing a sale of the company, according to an Oct. 5 filing announcement.