USA – CalPlant I LLC, the manufacturer of Eureka MDF, a 276-acre manufacturing plant in Willows, California has been put into voluntary Chapter 11 bankruptcy reorganization while its bondholders invest more money into an attempt to sell the pioneering operation.

The CalPlant operation is the world’s first to convert rice straw — a waste product of rice farming — into environmentally friendly medium-density fiberboard. The plant represents an investment of about USD 500 million.

CalPlant has been in development for nearly three decades and has been selling medium-density fiberboard for six months, though it is not yet fully operational. The Northern California-based company launched Eureka MDF in November 2020. 

To hasten the sale of the plant, the company has entered a “plan support agreement (PSA)” with its senior bondholders. The PSA provides for a comprehensive financial restructuring of the company’s debt and the investment resources to complete the commissioning of CalPlant’s manufacturing facility.

The company said it will continue to operate in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations throughout the restructuring process.