Renewable materials company BioAmber Inc. announced yesterday, 30 July, that it had failed to receive an acceptable offer from a qualified bidder as of 27 July 2018 and that it will now seek court approval for liquidation or alternative offers.
BioAmber, which operates a commercial-scale biobased succinic acid plant at Sarnia, Ontario, filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code at the beginning of May.
Moving forward, subject to the approval of the court and with support from its monitor or receiver appointed by the court, the company intends to solicit liquidators to bid on the acquisition and disposal of the company’s assets, including the Sarnia plant. It will continue to actively engage with qualified bidders and other interested parties to determine if, and under what terms, a transaction that would result in the continuation of the company’s operations is still possible.
This process will be conducted over an approximate two-week period with a target conclusion date of August 14.
“We are clearly disappointed that the Qualified Bidders did not place an acceptable offer for Bioamber,” commented Richard Eno, CEO. “We will continue to be actively engaged with potential investors to seek an acceptable transaction and avoid the liquidation of the company’s assets. Most importantly, I’d like to thank our dedicated and highly capable employees for their outstanding service to the company.”
Potential investors can contact Richard Eno in order to express interest in acquiring the assets or investing in the business.
There can be no guarantee that the company will be successful in securing further financing or achieving its restructuring objectives. Failure by the company to achieve its financing and restructuring goals will likely result in the company and its subsidiaries being liquidated. Liquidation will almost certainly result in no residual value for non-secured creditors and equity investors.