US-based CarbonLite Recyling (Los Angeles, California; www.carbonliterecycling.com), which claims to be the world’s largest producer of food-grade, post-consumer recycled PET, has filed for bankruptcy protection. In a statement, the firm said commercial pressures arising from the pandemic were among factors behind the move, along with the low price of virgin material versus the cost of recyclate.

It added that the opening of its new Pennsylvania plant was delayed by pandemic-related travel restrictions, which held up the delivery of new equipment from Europe. CarbonLite said it was in talks with customers, which could include the renegotiation of some supply contracts, and would continue operations in the meantime.

Reuters reported that the company has secured approval, on an interim basis, of four separate loans totalling USD 78.5m (EUR 66m) to fund its bankruptcy proceedings. Among leading creditors cited in papers filed with a US bankruptcy court in the District of Delaware are compatriot firms Nestlé Water North America (Stamford, Connecticut; www.nestle-watersna.com), which is owed USD 27m, and Niagara Bottling (Los Angeles, California; www.niagarawater.com), which is due more than USD 20m. The bankruptcy filing said CarbonLite had between USD 50m and USD 100m in assets and a similar amount of liabilities.

CarbonLite, founded in 2012 by plastics entrepreneur Frank Farahnik, says that it processes more than 7 bn plastics drinks bottles a year at its facilities in California, Texas and Pennsylvania. Last year the company announced it had increased capacity at its Dallas, Texas, operation by 20%.