Viridis Chemical, LLC and four affiliates are in the final phase of a wind-down Chapter 11: the sale of substantially all assets closed in May 2026, and a confirmation hearing on the Debtors' Combined Disclosure Statement and Chapter 11 Plan of Liquidation is set for July 8, 2026.
The Debtors — a Kingwood, Texas developer of bio-based ethyl acetate built on a proprietary Prairie Green catalytic process — filed on March 8, 2026, after construction cost overruns and supply chain disruptions at their Peoria, Illinois facility collided with a 26% decline in the ethyl acetate–ethanol price spread in late 2025. Construction was halted in December 2025, operations were paused, and the company was generating no revenue at filing. The Debtors entered bankruptcy with roughly $13.5 million of funded debt principal — a $10.0 million senior secured convertible note facility held by affiliates of EIV Capital and a minority investor, plus a $3.5 million subordinated unsecured note — with both tranches having matured in September 2025. Killian First Day DeclarationDkt. 5.
Rather than seek DIP financing, the Debtors funded the case on consensual cash collateral. A final order entered March 27, 2026 authorized use of cash collateral subject to an approved budget, a 115% aggregate variance cap, weekly variance reporting, and replacement liens and superpriority administrative expense claims for the Secured Noteholders under a carve-out capped at $200,000 for debtor professionals. Final Cash Collateral OrderDkt. 63.
The restructuring then pivoted to liquidation. The Debtors closed a court-approved sale of substantially all assets on May 26, 2026 for a $750,000 total purchase price, and Vinson & Elkins followed with supplemental conflict disclosures tied to the sale counterparties. . May 2026 operating reports show headcount at the Payroll entity down to two employees from nine at the petition date, with minimal residual cash and assets. . With the disclosure-statement hearing behind it and a status conference held in June, the case is now positioned for the July 8, 2026 confirmation hearing, marking the shift from asset monetization to plan confirmation and distribution.
