Desktop Metal Files for Bankruptcy and Seeks Private Asset Sale

Desktop Metal, a 3-D printing products maker, has filed for bankruptcy and plans to sell its assets in a private deal after defaulting on debt and failing to pay professional fees. The company is seeking court approval for a $10 million sale to Anzu Partners, an investment firm focused on industrial and life-sciences technology businesses.

Desktop Metal, a 3D printing products manufacturer, has filed for Chapter 11 bankruptcy in the Southern District of Texas, seeking court approval to sell its assets in a private deal. The company, based in Burlington, Massachusetts, has defaulted on debt and failed to pay professional fees, leading to its financial distress [2].

The company has agreed to sell its foreign subsidiaries—ExOne GmbH, EnvisionTEC GmbH, ExOne KK, and AIDRO srl—to an affiliate of Anzu Partners, an investment firm focused on industrial and life-sciences technology businesses. The sale is subject to court approval and customary closing conditions, and is expected to generate $10 million [2].

Desktop Metal's bankruptcy was filed under the leadership of its independent Board of Directors, who made the decision to protect the business while it markets its remaining assets. The company has retained legal counsel from Pachulski Stang Ziehl & Jones LLP, financial advisor FTI Consulting, and investment banker Piper Sandler & Co. [2].

Desktop Metal's Chief Restructuring Officer, Andrew Hinkelman of FTI Consulting, will work with the company during its reorganization process. The company's assets and liabilities are estimated to be in the range of $100-500 million [1].

Nano Dimension, which recently acquired Desktop Metal, has clarified that the decision to file for bankruptcy was made by Desktop Metal's independent Board of Directors. Nano Dimension's CEO, Ofir Baharav, stated that the company is safeguarding its financial strength and preserving its position as the best capitalized company in its ecosystem [2].

The sale of Desktop Metal's foreign subsidiaries is expected to help stabilize the company's corporate structure by repaying part of its debts. The court-supervised process is ongoing, and the company will communicate directly with its stakeholders, including employees, customers, vendors, and other partners, on next steps in the coming days [2].

References:
[1] https://www.metal-am.com/desktop-metal-files-for-chapter-11-bankruptcy-plans-asset-sale-to-anzu/
[2] https://3dprintingindustry.com/news/desktop-metal-files-for-bankruptcy-agrees-to-sell-foreign-subsidiaries-242566/
[3] https://www.prnewswire.com/news-releases/desktop-metal-to-pursue-sale-of-business-through-court-supervised-process-302515093.html
[4] https://www.wsj.com/articles/3-d-printer-maker-desktop-metal-risks-liquidation-without-sale-of-assets-624fc2f8