Morrison Foerster Guides CalPlant to Emergence from Chapter 11

Morrison Forester is pleased to announce that it has successfully guided CalPlant to emergence from its chapter 11 bankruptcy proceedings. Prior to its bankruptcy case, CalPlant constructed the world’s first plant intended to convert rice straw (a waste product of rice production) into high-quality, environmentally friendly, and competitively priced medium-density fiberboard (MDF). Construction of the plant, located in Willows, California, was financed primarily by tax-exempt “green” bonds. 

On October 5, 2021, facing severe operational defects with the plant’s manufacturing equipment, CalPlant and an affiliate made the decision to file for relief under chapter 11 of the Bankruptcy Code in Delaware. Earlier this year, CalPlant was forced to abandon the project after the plant proved incapable of operating as a going concern. 

On August 15, 2023, the Bankruptcy Court approved and confirmed CalPlant’s chapter 11 plan, which resolves nearly $500 million in secured claims and bankruptcy financing. The company’s remaining assets have vested in a liquidating trust to be monetized and the proceeds thereof distributed to creditors. 

The Morrison Foerster team advising CalPlant was led by Jennifer Marines, the firm’s vice chair and global co-chair of the firm’s Business Restructuring and Insolvency Group, together with restructuring partners Benjamin Butterfield and Theresa Foudy, with assistance from restructuring associates Martha Martir and Miranda Russell. Litigation partners Chiraag Shah and Julia Schwalm also advised the company.