Bioamber is based in Montreal and opened its first commercial-scale plant in Sarnia in 2015, receiving $52-million in provincial and federal funding for the $140-million dollar facility that uses corn syrup to make succinic acid, a building block used from plastics to cosmetics.
BioAmber filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code and its two Canadian subsidiaries, BioAmber Sarnia Inc. and BioAmber Canada Inc., filed a Notice of Intention (the “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.
In a news release, the company says asking for a stay of proceedings from its creditors will allow the company time to restructure its finances.
“This process will provide BioAmber with the time and stability to restructure its finances. 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,” said Richard Eno, Chief Executive Officer of BioAmber.
BioAmber, which employs about 60 people in Sarnia, says if it fails to achieve its financing and restructuring goals, it will likely result “in the company and or its subsidiaries being forced to cease operations and liquidate its assets.”