[Photo above: Desktop Metal employees on the industrial printer production line in Massachusetts, USA. Source: Desktop Metal]
By Yochai Schweiger
Desktop Metal, once a leading player in the 3D printing industry, filed for Chapter 11 bankruptcy protection on Monday in a federal court in Texas. The company, acquired just a few months ago by Israeli firm Nano Dimension, is now seeking to restructure its debt while continuing day-to-day operations.
According to documents filed with the court and the SEC, the company is in serious financial trouble: it reported over $100 million in unsecured debt. As of September 2024, Desktop Metal had approximately $30.6 million in cash and an additional $22.8 million in receivables, but internal forecasts predicted that its cash reserves would drop below $10 million during 2025, while monthly operating expenses ranged between $3–6 million. As part of its restructuring, the company plans to sell its subsidiaries ExOne and EnvisionTEC in a court-supervised sale process.
Chapter 11 is a legal procedure in the United States designed to help insolvent yet potentially viable companies reorganize their debts while continuing operations. The company functions as a “debtor in possession,” meaning it remains in control of its business under court supervision and must obtain approval for major decisions such as asset sales or contract agreements. For Desktop Metal, this status allows it to keep supplying products and services to clients—but it’s a risky move, as the company’s ability to operate hinges on limited cash flow, vendor cooperation, and judicial approvals.
A Legal Drama: The Lawyer Who Won—But Went Unpaid
One of the more unusual aspects of Desktop Metal’s downfall involves the lawyers who fought for the company—and were left without pay. The prominent American law firm Quinn Emanuel, which employs over 1,000 attorneys, represented Desktop Metal in its legal battle against Nano Dimension, after the latter attempted to back out of the acquisition deal. In April 2025, a Delaware court ruled that Nano Dimension was obligated to complete the acquisition within days. Nano Dimension eventually followed through, paying approximately $179 million. For Quinn Emanuel, it was a major legal victory—but what followed was Kafkaesque.
Soon after the acquisition, Quinn Emanuel was not paid its legal fees, totaling around $30 million. The firm claims that Nano Dimension, having gained control over Desktop Metal, is now using that control to avoid payment—despite having held over $845 million in cash at the time of acquisition. In a lawsuit filed just days ago, Quinn Emanuel accuses Nano Dimension of vindictive behavior: “Nano Dimension is trying to punish the lawyers who made it lose in court,” the complaint states.
Now that Desktop Metal is under Chapter 11 protection, Quinn Emanuel fears that Nano Dimension may effectively dodge the debt. Since the legal fee debt is officially held by the acquired company—which is now under bankruptcy protection—it may be treated like any other unsecured debt: reduced, rescheduled, or wiped out altogether. This would lead to an almost absurd legal outcome: the lawyers who won the case would be the very ones left unpaid.
A Promise Unfulfilled
Founded in 2015 in Massachusetts, Desktop Metal emerged as a breakthrough startup aiming to make metal 3D printing accessible, fast, and truly industrial. It attracted hundreds of millions of dollars in investment from major players like Fidelity, Foote Partners, and General Electric, and introduced the Studio System and Production System printers—hailed as a revolution in digital metal manufacturing. In 2020, it went public via a SPAC merger at a valuation of $2.5 billion—a peak moment that symbolized investor enthusiasm for advanced manufacturing technologies.
But the market didn’t mature as quickly as expected. Demand for metal 3D printing failed to scale, and profitability remained elusive. The company acquired competitors like ExOne and EnvisionTEC in an attempt to grow, but in doing so, it burned through cash and piled on debt. By 2024, the once-hyped brand—promising customized manufacturing “at the push of a button”—was facing declining liquidity, pending lawsuits, and a loss of market confidence.
The Chapter 11 filing not only marks the collapse of Desktop Metal itself, but also the broader disillusionment with the idea that industrial 3D printing, especially in metals, was ready to replace traditional manufacturing. Desktop Metal wasn’t just another printer company—it symbolized the hope for a second industrial revolution. Now, its story stands as a warning: even brilliant technology needs a sustainable business model, a mature market, and the ability to stand the test of time.
A Botched Acquisition Under the Former CEO
Desktop Metal’s collapse shortly after being acquired by Nano Dimension raises serious questions about the very nature of the deal, completed in April 2025 and unraveling in less than three months. The fact that Nano Dimension acquired such a highly leveraged, cash-burning, and financially unstable company casts doubt on the quality of due diligence and the judgment of the company’s previous leadership.
The acquisition has quickly turned into a major operational, reputational, and legal burden. It’s important to note that the deal was made under the leadership of Nano Dimension’s former CEO, Yoav Stern, who pursued an aggressive M&A strategy. The company’s current management, appointed shortly afterward, is now left to deal with a toxic business legacy: a high-profile lawsuit over unpaid legal fees, a failing business unit under Chapter 11, and growing market concerns over Nano Dimension’s strategic decision-making.