Synthetic biotechnology company Amyris commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware. Amyris entities outside the US are not included in the proceedings.
The concomitant restructuring is intended to improve the company’s cost structure, capital structure, and liquidity position while streamlining Amyris’ business portfolio to focus on its core competencies in R&D and the scale-up, commercialization, and applications development of its sustainable ingredients derived through biofermentation.
In tandem, to advance its restructuring goals and maximize the value of its assets, Amyris is planning to exit its consumer brands and will begin marketing them for sale, with a view to having these brands continue to leverage Amyris’ science and technology while under new ownership. As the sale process progresses, Amyris will continue to operate these brands, including through retail partners and the brands’ e-commerce platforms.
Amyris has secured a commitment from an entity affiliated with existing lender Foris Ventures for $190 million of debtor-in-possession (DIP) financing to support continued day-to-day operations as the company works with its key stakeholders to negotiate a consensual go-forward plan centered on Amyris’ core capabilities.
To ensure a smooth transition into Chapter 11, the company filed with the Court a series of customary motions seeking to continue operating as usual and uphold its commitments to its employees and other valued stakeholders during the process. These “first day” motions include requests to continue to pay wages and provide benefits to employees as usual and maintain its customer programs and policies. The company intends to pay vendors in the ordinary course for all goods received and services rendered after the filing.