Fuel additive maker Polar Molecular Corp. entered Chapter 11 bankruptcy in an effort to block its largest secured creditor from selling off its patents, worth about $400 million.

The bankruptcy filing will allow the company to protect its fuel product patents - worth far more than the $1.1 million owed to lender Petroleum Enhancer LLC - while it reorganizes, a lawyer for the company said.

Paul Quinn, who is representing the company in the Chapter 11 case underway since Friday in the U.S. Bankruptcy Court in Denver, said that Polar Molecular "has every intention of staying in business" because the value of its patents far outweighs its debt.

Last week, the Denver-based company's co-founder and Chief Executive Mark Nelson obtained a new $10 million contract, Quinn said. Although he wouldn't disclose any details of the new contract, Quinn said that this and other contracts the company hopes to obtain should allow it to repay its debt and reorganize.

A Michigan judge gave Petroleum Enhancer permission to foreclose on the patents after Polar Molecular defaulted on its loan. The filing of the Chapter 11 petition Friday halted the foreclosure sale that was to take place Monday, Quinn said.

The filing listed total assets - the patents - of $400 million and total liabilities of $5.12 million.