BioAmber fails to secure Qualified Bidder
In North America, troubled bio-based chemical producer BioAmber Inc., has announced that the current stage of the Sales and Investor Solicitation Process (SISP) has concluded without an acceptable offer having been received from a Qualified Bidder as of the due date of July 27, 2018. The company will now seek to obtain court approval to pursue liquidation as well as alternative offers in order to realize the greatest value on behalf of its creditors.
In May, 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.
Not having received a Qualified Bidder from the Sales and Investor Solicitation Process (SISP) within the due date and subject to the approval of the court and with support from its monitor PricewaterhouseCoopers Inc., (PwC) 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 in Ontario, Canada;
- 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.
The company estimates this process will be conducted over an approximate two-week period with a target conclusion date of August 14. The company will engage with Maynbridge Capital, its interim lender, and all other secured lenders to determine the best going-forward strategy.
We are clearly disappointed that the Qualified Bidders did not place an acceptable offer for Bioamber. 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, said Richard Eno, CEO, BioAmber.