Key Takeaways
- Court Approval: Benson Hill received first-day motion approvals from the U.S. Bankruptcy Court following its Chapter 11 filing on March 20, 2025.
- DIP Financing: The company secured access to up to $11 million in debtor-in-possession financing, with $3 million immediately available.
- Operational Continuity: Approvals allow Benson Hill to maintain regular business activities, including employee payments and vendor obligations.
- Focus on Restructuring: The restructuring process aims to strengthen the company’s financial foundation while continuing its core mission in seed innovation.
- Next Steps: A final court hearing is scheduled for April 16 to consider full approval of financing and vendor motions.
Benson Hill Receives Court Approval to Advance Restructuring
Benson Hill, Inc. (Nasdaq: BHIL), a seed innovation company, announced that the U.S. Bankruptcy Court for the District of Delaware has approved its initial first-day motions. These approvals follow the company’s voluntary filing under Chapter 11 of the U.S. Bankruptcy Code on March 20, 2025.
According to Dan Cosgrove, Interim Chief Executive Officer, the approvals allow Benson Hill to maintain business momentum while it works to strengthen its financial position. “We remain focused on delivering value to our customers and partners while positioning the business for long-term success and maximizing value for all of our stakeholders,” Cosgrove stated.
Access to Financing and Operational Continuity
The court’s orders permit Benson Hill and its affiliated debtors to continue operations with minimal disruption. Key approvals include:
- Access to up to $11 million in debtor-in-possession (DIP) financing from existing lenders such as Expedition Ag Holdings, S2G Investments, Steve Kahn, and ProAgInvest, with an initial $3 million available immediately.
- Authorization to pay employee wages and provide benefits without interruption.
- Approval to honor prepetition obligations to essential business partners, including critical vendors, suppliers, warehouse providers, and shippers.
- Legal permission to maintain existing banking systems and routine business processes.
- Authorization for DIP lenders to credit bid for assets, with additional protections in the event of default.
Benson Hill’s Strategic Outlook and Upcoming Milestones
These developments are expected to ensure continuity across Benson Hill’s operations as it continues to focus on its core work in seed innovation—particularly in delivering improved soybean genetics and quality traits for food, feed, and fuel.
A final hearing to approve the full DIP financing and vendor-related motions is scheduled for April 16. The company will continue to update stakeholders as the restructuring progresses.
