SEATTLE (Recycling Monster): Fulcrum BioEnergy, Inc., a California-based company, has filed for Chapter 11 bankruptcy protection in a Delaware court. The business had previously pledged to run the nation's first waste-to-sustainable aviation fuel factory on a commercial basis.
The company opened its Nevada facility in 2022, backed by companies including WM and Marathon Petroleum. As per filing, Marathon is owed $858,925 and WM is owed $363,292.95.
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Following operational challenges, Fulcrum terminated the employment of all 100 employees at the factory and suspended most of its activities in May of this year. It also postponed plans to open facilities in the UK and Indiana at the same time.
According to a court document, the largest creditor is the Teachers Insurance and Annuity Association of America (TIAA), which supplied a bank loan of around $40 million. Moreover, Rustic Canyon Ventures has given a $5 million loan. The company has been facing a number of lawsuits from contractors.
Liabilities disclosed by the corporation ranged from $100 million to $500 million. The number of creditors exceeded 200. The unpaid creditors also include contractors like United Rentals, as per bankruptcy filings.
Morris, Nichols, Arsht & Tunnell, a Delaware law firm, has been recruited by Fulcrum for the bankruptcy lawsuit.