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PET Recycler CarbonLite Files for Chapter 11 BankruptcyPET Recycler CarbonLite Files for Chapter 11 Bankruptcy

COVID-related production slowdowns and the depressed price of new plastic led to the decision.

Clare Goldsberry

March 11, 2021

1 Min Read
bankruptcy file and gavel
Image: danielfela/Adobe Stock

PET bottle recycling company CarbonLite Holdings LLC announced it has filed for Chapter 11 bankruptcy. Production at all CarbonLite facilities will continue and no layoffs are anticipated, said the company’s announcement.

“We’ve chosen to take this necessary step during a time of unprecedented challenge and expect to emerge from reorganization even more strongly positioned for the future,” said CarbonLite Recycling CEO Leon Farahnik. “Our customers, all of whom have steadily increased their commitments to the use of recycled plastic in their products, have expressed confidence in this process and our carefully considered decision,” he added.

CarbonLite cited pressures directly related to the coronavirus pandemic for its financial issues, pointing to slowdowns in production because of employee illness and the depressed price of new plastic. COVID-19 also caused a nine-month delay in the completion and opening of its Berks County, PA, location. The company said it incurred heavy capital expenditures from the opening of the new plant as well as an expansion of its Texas property.

About the Author(s)

Clare Goldsberry

Until she retired in September 2021, Clare Goldsberry reported on the plastics industry for more than 30 years. In addition to the 10,000+ articles she has written, by her own estimation, she is the author of several books, including The Business of Injection Molding: How to succeed as a custom molder and Purchasing Injection Molds: A buyers guide. Goldsberry is a member of the Plastics Pioneers Association. She reflected on her long career in "Time to Say Good-Bye."

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