BioAmber initiates liquidation process
In North America, troubled bio-based chemical producer BioAmber Inc., has announced that following a court order issued on July 31, 2018, the company, along with its monitor, PricewaterhouseCoopers (PWC), has initiated a liquidation process pursuant to which offers will be solicited from liquidators and/or strategic buyers to proceed with the liquidation of the company's assets or a recapitalization transaction with the goal of realizing the greatest value on behalf of the company's creditors.
In May 2018, BioAmber Inc., filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code and that its two Canadian subsidiaries, BioAmber Sarnia Inc. and BioAmber Canada Inc., filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act (Canada), with a view to strengthening the company’s financial health and solidifying its long-term business prospects.
At the end of July, the company said it had not received an “acceptable offer” from a Qualified Bidder from the Sales and Investor Solicitation Process (SISP) within the due date and was applying for court approval to solicit liquidators to bid on the acquisition and disposal of the company’s assets, including the Sarnia plant in Ontario, Canada as well as to 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.
According to a statement, binding offers from the liquidators or strategic buyers must be received by 9 a.m. on August 21, 2018, and if acceptable offers are received, the company will seek to obtain court approval of the retained offer on August 28, 2018, and close the transaction on August 31, 2018.