Amyris and certain of its U.S. subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. The company said the decision was taken in order to facilitate its business and financial reorganization.
Amyris intends to streamline its business portfolio to focus on its core competencies in R&D and the scale-up, commercialization, and applications development of its sustainable ingredients derived through biofermentation. The company is therefore planning to exit its consumer brands and will begin marketing them for sale. Amyris’ portfolio of consumer brands includes: Biossance, Costa Brazil, JVN, Olika, Onda Beauty, Menolabs, Pipette, Purecane, Rose Inc., Stripes, Terasana, and 4U by Tia.
“As the sale process progresses, Amyris will continue to operate these brands, including through retail partners and the brands’ e-commerce platforms,” said the company in a statement.
An entity affiliated with existing lender Foris Ventures has committed to USD 190 million of debtor-in-possession (DIP) financing to support continued day-to-day operations as Amyris works with its key stakeholders to negotiate a consensual go-forward plan.
Last June, as part of its cost reduction targets Amyris announced the resignation of John Melo as president, CEO and a member of the board of directors, as well as a global reduction in force. In February, Amyris had sold a large part of its cosmetic ingredients to Givaudan. The two companies signed a long-term partnership agreement under which Amyris would continue to manufacture cosmetic ingredients for Givaudan, who will become the commercialization partner for future sustainable beauty ingredients.
To ensure a smooth transition into Chapter 11, the company filed with the Court a series of customary motions seeking to continue operating as usual and uphold its commitments to its employees and other valued stakeholders during the process. These “first day” motions include requests to continue to pay wages and provide benefits to employees as usual and maintain its customer programs and policies.
“Over the past months, we have been hard at work on a strategic transformation plan to reduce costs, improve operational effectiveness, and achieve sustainable growth. We believe the step forward our company has taken today puts us on the best path to address our financial challenges and achieve a comprehensive solution. At the end of this restructuring process, we believe that Amyris will emerge as a financially stronger company with a more focused business model and well-defined path to profitability,” said Han Kieftenbeld, Interim Chief Executive Officer and Chief Financial Officer of Amyris.