Filing Alert: Viridis Chemical Chapter 11
Viridis Chemical Files Chapter 11 in Southern District of Texas
Update (Mar. 9, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Viridis Chemical, LLC.
Viridis Chemical, LLC and its debtor affiliates⁽¹⁾, a Kingwood, TX-based manufacturing company specializing in the production of ethyl acetate, filed for Chapter 11 protection on Mar. 8 in the U.S. Bankruptcy Court for the Southern District of Texas.
The company attributes its filing to an acute liquidity crisis driven by massive cost overruns and delays in relocating its primary manufacturing facility from Nebraska to Peoria, Illinois. The capital project was severely impaired by a 26% contraction in the ethyl acetate-to-ethanol spread in H2 2025, unbudgeted regulatory costs, and supply chain bottlenecks—specifically, the delayed importation of a critical dehydration unit hindered by Indian steel tariffs. Facing exhausted liquidity, and an escalating billing dispute with its general contractor, the company halted construction in December 2025 and has remained in payment default on its prepetition funded debt since September 2025.
Entering Chapter 11 without finalized postpetition financing, the debtors seek to conduct an in-court marketing and restructuring process spearheaded by Carl Marks Advisors. To manage potential related-party conflicts, the board delegated strategic oversight to a special committee directed by Mark McDermott. The Chapter 11 runway is designed to provide the company with sufficient time to finalize a cost and timeline feasibility study by Zachry Group—quantifying the remaining capital required to complete construction—while running a robust process to secure new capital investment or effectuate a Section 363 asset sale.
Viridis Chemical, LLC reports $10 million to $50 million in both assets and liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 26-90393.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Paul E. Heath
Vinson & Elkins LLP
Email: [email protected]
Investment Banker:
- Carl Marks Advisory Group, LLC
Signatories:
- Patrick D. Killian – Chief Executive Officer
Claims Agent:
Equity Security Holders:
- EIV Viridis Chemical, LLC – 88% Common Equity, 92.9% Preferred Equity
- IFG Viridis Partners, LLC – 12% Common Equity, 7.1% Preferred Equity
- Patrick D. Killian – 0.02% Common Equity, 0% Preferred Equity
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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