SSG Capital Advisors, LLC (“SSG”) served as the investment banker to Brightmark Plastics Renewal LLC and certain affiliates (collectively, “Brightmark Indiana” or the “Company”) in the sale of substantially all assets to Brightmark Plastics Ashley HoldCo LLC (“Brightmark Parent”). The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in May 2025.
Brightmark Indiana owned and operated the Ashley Circularity Center, an advanced pyrolysis polymer conversion facility that transforms hard-to-recycle plastics into pyrolysis oil, which can be refined into new, recycled plastics. In 2019, Brightmark Indiana secured debt financing through the issuance of Indiana municipal bonds, along with a significant equity contribution from its parent company, Brightmark Parent, to build the facility.
Although the facility achieved mechanical completion, proven production, and sales to major petrochemical companies, it faced ongoing operational challenges which caused extremely low utilization rates. To reach full-scale production and financial targets, the plant required an additional investment to support ramp-up costs and critical facility enhancements. However, the Company was unable to secure the necessary funding given its substantial secured debt load and Brightmark Indiana elected to file for protection under Chapter 11 of the U.S. Bankruptcy Code on March 16, 2025.
Immediately following the Chapter 11 filing, SSG launched an expedited post-petition marketing process that targeted a broad universe of potential strategic and financial buyers. The process generated significant interest and several qualified bids after a compressed 50-day marketing period. Leveraging its deep expertise in virtual auction execution, SSG created a dynamic and competitive environment that facilitated 25 rounds of bidding and drove a 90% increase over the opening bid.
While the auction resulted in the secured lender’s credit bid being deemed the highest bid, the going-concern cash bid submitted by Brightmark Parent was ultimately approved as the winning bid at the sale hearing. After a full day of testimony, argument, and consideration of competing interests, the Court determined that Brightmark Parent’s bid provided superior value through cash consideration, the assumption of liabilities, preservation of jobs, and continued plant operations. Recognizing the practical limitations posed by the secured lender’s ~$180 million credit bid rights, the roles of Potter Anderson and SSG were critical in building a robust evidentiary record that enabled the Court to weigh ‘highest’ versus ‘best’ value and ultimately approve the transaction that preserved operations and maximized recovery to all stakeholders.
Other professionals who worked on the transaction include:
Jeremy W. Ryan, Brett M. Haywood, R. Stephen McNeill, Michael W. Whittaker, Katelin A. Morales, James R. Risener III, Andrew C. Ehrmann, Ciara E. Sprance and Ethan H. Sulik of Potter Anderson & Corroon LLP, counsel to Brightmark Plastics Renewal LLC;
Craig R. Jalbert of Verdolino & Lowey, P.C., Chief Restructuring Officer of Brightmark Plastics Renewal LLC;
Timothy J. Bernlohr of TJB Management Consulting, LLC, Independent Manager to Brightmark Plastics Renewal LLC;
Andrew I. Silfen, Beth M. Brownstein, Eric Roman, Mark A. Angelov, Tal M. Unrad and James E. Britton of ArentFox Schiff LLP, co-counsel to UMB Bank, N.A. (Indenture Trustee to the bondholders);
Matthew P. Ward of Womble Bond Dickinson (US) LLP, co-counsel to UMB Bank, N.A.;
Andrew Scruton, Kenneth M. Stern, William Ng, Adam Saltzman and Elizabeth Volk of FTI Consulting, Inc., financial advisor to UMB Bank, N.A.;
David A. Stockton, Paul M. Rosenblatt and Catherine E. Zhu of Kilpatrick Townsend & Stockton LLP, co-counsel to Brightmark Plastics Ashley HoldCo LLC; and
Mark L. Desgrosseilliers of Chipman Brown Cicero & Cole, LLP, co-counsel to Brightmark Plastics Ashley HoldCo LLC.
