Massachusetts-based metal 3D printer manufacturer Desktop Metal (DM) has filed for Chapter 11 bankruptcy. The company has also agreed to sell its foreign subsidiaries, ExOne GmbH, EnvisionTEC GmbH, ExOne KK, and AIDRO s.r.l., to an affiliate of Anzu Partners, pending Court approval and customary closing conditions.
DM’s bankruptcy was filed in the Southern District of Texas. According to an official press release, the company’s independent Board of Directors made this decision to protect the business “while it markets its remaining assets.”
The announcement comes after electronics 3D printing specialist Nano Dimension finalized its $179.3 million acquisition of Desktop Metal in April. At the time, Nano revealed that Desktop Metal had launched a review of strategic alternatives to address its liabilities and liquidity challenges. That process has now concluded, with DM’s Board opting to file for bankruptcy.
Desktop Metal has retained Pachulski Stang Ziehl & Jones LLP as legal counsel, FTI Consulting as financial advisor, and Piper Sandler & Co. as investment banker.
“The Company values its stakeholders—employees, customers, vendors, and other partners will be communicated with directly on next steps in the coming days,” commented Desktop Metal in an official statement.
Nano Dimension’s CEO, Ofir Baharav, stated: “We are safeguarding our financial strength and preserving our position as the best capitalized company in our ecosystem. This is what enables the Company to pursue strategic opportunities from a position of maximum strength—and that is exactly what the Company’s shareholders should expect from us.”
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Featured image shows Desktop Metal 3D printers. Photo via Desktop Metal.
