Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company that accelerates the world’s transition to sustainable consumption through its Lab-to-Market™ technology platform and clean beauty consumer brands, announced on Wednesday that it has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The company said that the bankruptcy filing is part of its operational and financial restructuring to advance its strategic transformation and position itself for long-term success.
The company’s entities outside the U.S. are not included in the bankruptcy proceedings. Amyris said that it has secured a commitment from an entity affiliated with existing lender Foris Ventures for $190 million of debtor-in-possession (DIP) financing to support its day-to-day operations during the restructuring process. The DIP financing is subject to court approval and the DIP budget.
Amyris plans to exit its consumer brands and focus on its core competencies
As part of its restructuring plan, Amyris said that it intends to exit its consumer brands and will begin marketing them for sale. The company’s consumer brands include Biossance, Pipette, Rose Inc., Terasana, and Costa Brazil. Amyris said that it aims to have these brands continue to leverage its cutting-edge science and technology while under new ownership. As the sale process progresses, Amyris will continue to operate these brands, including through retail partners and the brands’ e-commerce platforms.
Amyris said that it will 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’s ingredients are used in various markets such as health and wellness, clean beauty, flavors and fragrances, and personal care.
Amyris expects to emerge from bankruptcy as a stronger and more focused company
Amyris said that it expects to emerge from bankruptcy as a stronger and more focused company that can deliver profitable growth and sustained cash generation. The company said that it has been working with its key stakeholders to negotiate a consensual go-forward plan that will reduce its debt, improve its liquidity, and streamline its business portfolio.
“We are confident that this restructuring will enable us to achieve our strategic objectives and create value for our stakeholders,” said Han Kieftenbeld, Interim Chief Executive Officer and Chief Financial Officer of Amyris. “We are grateful for the continued support of our customers, partners, vendors, and employees as we work to complete this process as quickly and efficiently as possible.”