Key Takeaways
- Benson Hill, Inc. and its subsidiaries have filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.
- The company plans to pursue a sale of all or part of its assets under Section 363 of the U.S. Bankruptcy Code.
- Benson Hill has secured $11 million in Debtor-in-Possession (DIP) financing to maintain operations during the restructuring process.
- “First-day” motions have been filed to ensure continued service to customers and obligations to employees during Chapter 11 proceedings.
- The company cites a combination of industry conditions and financial constraints as key drivers for the decision.
Benson Hill’s Chapter 11 Filing and Restructuring Overview
Benson Hill, Inc. (Nasdaq: BHIL), a seed innovation company focused on developing soybeans with enhanced traits, announced that it has filed for Chapter 11 bankruptcy protection along with its subsidiaries. The filing was made in the U.S. Bankruptcy Court for the District of Delaware.
The company stated its intention to sell its business or certain assets through a court-supervised process under Section 363 of the Bankruptcy Code, which allows for the sale of assets free and clear of certain liabilities.
Operational Continuity During Chapter 11 Process
To support its ongoing operations, Benson Hill disclosed that it has secured a commitment for approximately $11 million in Debtor-in-Possession (DIP) financing, subject to court approval. The company also noted that it plans to use its existing cash reserves during this period.
A series of “first-day” motions were filed to request customary relief, allowing the company to continue operations, including:
- Servicing existing customers.
- Maintaining employee obligations.
- Supporting ongoing business activities during the sale process.
Benson Hill Strategic Focus and Business Transformation Efforts
In recent years, Benson Hill has aimed to reposition its business by reducing operational costs, divesting non-core assets, and transitioning to a licensing model for its seed technology.
“Benson Hill has made significant strides in advancing our seed innovation portfolio by developing soybeans with enhanced compositional traits,” said Dan Jacobi, Chairman of the Board of Directors. “Despite our efforts, a combination of industry challenges and financial constraints has led the Board to determine that a process under Chapter 11 is the best path forward.”
Legal and Financial Advisors
In connection with the restructuring, Benson Hill has engaged:
- Faegre Drinker Biddle & Reath LLP as legal counsel.
- Piper Sandler & Co. as investment banker.
Additional information about the case, including court filings and updates, is available through the company’s claims agent, Stretto, Inc., at https://cases.stretto.com/bensonhill.
