US B2B Payment Tech Firm Plastiq Has Declared Chapter 11 Bankruptcy

US B2B payment tech firm Plastiq has declared Chapter 11 bankruptcy and intends to sell its assets to Priority Technology Holdings, an integrated payments and banking platform provider, for an undisclosed amount. Established in San Francisco in 2012, Plastiq facilitates bill payments and provides working capital for small to medium-sized businesses. The company's voluntary bankruptcy filing on May 24 was compelled by the collapse of its payment processing associate, Silicon Valley Bank, which led to the halt of Plastiq's operations.

Last year, Plastiq planned to go public via a SPAC merger, targeting a valuation of $480 million.

The deal awaits approval from the Bankruptcy Court and is also subject to potentially higher offers Plastiq may get during the auction process.