Desktop Metal

Desktop Metal Enters Chapter 11, Nano Dimension Faces Legal Blowback

Posted on by Techtime

[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.

Nano Dimension May Let Desktop Metal Default on Its Debt

Posted on by Techtime

[In the photo above: Desktop Metal employees on the industrial printer production line in Massachusetts, USA. Source: Desktop Metal]

Will Nano Dimension allow Desktop Metal, the company it acquired just weeks ago, to fall into bankruptcy? That scenario now seems very much on the table, judging by statements made by Nano Dimension’s executives during their recent earnings call following the release of their 2024 financial results. During the call, company leaders hinted that Nano Dimension may not provide Desktop Metal with the financial support needed to meet its debt obligations—potentially sealing its fate.

As a reminder, Nano Dimension completed the acquisition of Desktop Metal last month—grudgingly and under court order from a Delaware court—for $180 million. But Desktop Metal joins the company with considerable financial baggage. Alongside ongoing operating losses, it carries a burden of approximately $150 million in convertible notes, due to be repaid to bondholders by June 11, 2025, along with interest. As of September 2024, Desktop Metal had just $30 million in cash.

Distancing from Desktop Metal, Embracing Markforged

Nano Dimension’s newly appointed CFO, Assaf Zipori, addressed the issue directly in the earnings call: “Let’s talk about the elephant in the room. It’s clear to anyone analyzing Desktop Metal that it’s a company with limited liquidity and substantial debt. It lacks the liquidity to repay these notes or meet other material obligations—obligations of Desktop Metal, not of Nano Dimension. While we’ve provided limited short-term funding, we cannot commit to further financial support.”

This statement suggests that Nano Dimension is actively distancing itself from Desktop Metal. The latter is now independently working with two consulting firms to explore potential solutions for its financial crisis. Another clear sign of Nano’s hands-off stance came from Zipori’s additional comment: “We will act consistently with our guiding principles—preserving financial strength and investing only in growth- and profit-oriented opportunities.”

If Desktop Metal does default, key questions remain: what legal and financial ramifications might Nano Dimension face, and how will investors and markets react? After all, this might be perceived as a walk-away from a corporate commitment—albeit one made by a previous management team.

In stark contrast, Nano Dimension’s recent $115 million acquisition of U.S.-based Markforged appears to be welcomed by the new leadership. CFO Assaf Zipori, formerly of Markforged, has taken over as Nano’s global CFO. The Markforged technology fits more squarely into Nano Dimension’s software-driven vision. “Markforged has an excellent software platform—we knew it before the deal, and we know it even better now,” said interim CEO Julian Lederman during the call, following the ousting of former CEO Yoav Stern.

Cleaning Up a Legacy of Unfocused Acquisitions

Desktop Metal isn’t the only problematic asset from the acquisition spree led by Stern, Nano Dimension’s previous CEO. Under his leadership, the company made no fewer than 10 acquisitions totaling nearly $450 million—resulting in a fragmented group of 3D printing and PCB companies, often lacking clear business or technological synergy.

The new leadership seems determined to refocus. Plans are underway to exit less profitable product lines and zero in on advanced additive manufacturing solutions for high-performance, high-value parts—returning to Nano Dimension’s original mission of 3D-printed PCBs and electronic components. “Shareholders demanded change, and we’re delivering it,” said Zipori. “We’re applying a disciplined strategy focused on synergy. No more random acquisitions—every business line must offer a defensible technological edge against low-cost Far East competition.”

During their first quarter in office, the new leadership divested from Admatec, DeepCube, NanoFabrica, and Formatec. Two of these—NanoFabrica and DeepCube—are Israeli firms. NanoFabrica, acquired in 2021 for $55 million, developed 3D printers for micro-scale parts. DeepCube, acquired around the same time for $70 million, specialized in AI algorithms. This deal raised eyebrows both for its high price and questionable strategic fit—especially since DeepCube’s founder was a board member at Nano Dimension, sparking concerns of conflict of interest.

Though the CFO didn’t elaborate on what “divestment” entails, Nano Dimension confirmed to Techtime that these four companies have ceased operations, and full details will be included in the upcoming annual report to the SEC.

Trade War Tailwinds?

In 2024, Nano Dimension reported revenue of $57.8 million, a 2.6% increase over 2023. EBITDA-adjusted net loss was $65.3 million, a 35% improvement from the previous year. Preliminary results for Q1 2025 show revenue of $14.4 million—an 8% year-over-year rise. The company believes that U.S. President Trump’s tariff and trade policies may play to its advantage. “Global trade dynamics are forcing companies to reevaluate supply chains, and we aim to help them do just that,” said CEO Ofir Baharav.

It’s worth noting that a similar hope surrounded the COVID-19 crisis, when companies were expected to localize supply chains—yet that business boom never materialized.