BioAmber files for a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code and it’s two Canadian subsidiaries, BioAmber Sarnia Inc. and BioAmber Canada Inc. file for a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act.
The company has one of the largest succinic acid production facility’s in the world in Sarnia, Ontario that opened in the spring of 2015, employing roughly 60 people. Their mission was to be a fast-growing producer of chemical intermediates that uses sugars instead of fossil fuels and sell competitively priced, sustainable chemicals with strong profit margins to have the cleanest environmental footprint in the industry.
Appearing to have been riding the edge of the knife for the past several years, recently losing their founding president and being delisted from the Toronto and New York Stock Exchange, it has been a trying time for this Canadian company.
They lost buckets of money back in 2013, but investors kept on coming regardless. Still rolling with the punches, BioAmber believes that filing for these procedures will be in the best interest of the stakeholders and will best facilitate its efforts to renegotiate its debt and raise the funds needed to continue operation.
“This process will provide BioAmber with the time and stability to restructure its finances,” says Richard Eno, chief executive officer of BioAmber. “This restructuring, combined with the significantly improved cost structure we anticipate, will position BioAmber to emerge as a much stronger company which will be better positioned to meet the growing global demand we see for our product.”
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/or its subsidiaries being forced to cease operations and liquidate its assets.