Desktop Metal Files for Chapter 11 Bankruptcy

Once considered a leading force within the additive manufacturing industry, Desktop Metal officially filed for Chapter 11 bankruptcy. This move comes amid ongoing efforts to stabilize the company’s financial position and sell off key international subsidiaries. The company filed this week with the U.S Bankruptcy Court for the Southern District of Texas, and will allow for the company to restructure its debt while continuing limited operations. According to recently released court documents, the company lists between $1 billion and $10 billion in both assets and liabilities, with some funds expected to be set aside for unsecured creditors.

As part of its restructuring, Desktop Metal has entered into an agreement to sell several of its international business units, including ExOne GmbH, EnvisionTEC GmbH, ExOne KK, and AIDRO s.r.l., to an affiliate of the investment firm Anzu Partners. The acquisition of the company’s international subsidiaries has been granted approval by the district court for Anzu’s acquisition of ExOne GmbH and ExOne KK without objections. This decision is not expected to be appealed, and this allows for Desktop Metal to begin the transfer of assets immediately. Currently, Desktop Metal’s subsidiaries operate in Germany, Italy, and Japan and represent some of the company’s most recognized brands in binder jetting and DLP-based technologies.

Desktop Metal previously saw large investments with its office-friendly metal 3D printing systems. (Photo Credit: Desktop Metal)

This news follows recent reports of a contentious acquisition by Nano Dimension, which finalized its purchase of Desktop Metal earlier in the year following a court-ordered ruling. Nano Dimension stated that the decision to pursue bankruptcy was made independently by the board at Desktop Metal. Nano CEO Ofir Baharav emphasized that the move was about preserving financial feasibility and enabling the company to pursue new opportunities with minimal risk. In a comment on the filing, Baharav said, “We are safeguarding our financial stability and maintaining our status as the best-capitalized company in our ecosystem. This strong position allows us to pursue strategic opportunities with maximum leverage.”