AgTech Firm Benson Hill Files for Chapter 11 Bankruptcy
Food tech company Benson Hill Inc. has revealed that it and its subsidiaries filed voluntary petitions for relief under Chapter 11 of Title 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company intends to pursue a sale of its business, including a sale of all or a portion of the company’s assets, while continuing to support its farmers, partners and customers during the Chapter 11 process.
Benson Hill is a seed innovation company that unlocks nature’s genetic diversity in soy quality traits through a combination of its proprietary genetics, its AI-driven CropOS technology platform and its Crop Accelerator. It collaborates with strategic partners to create value throughout the agribusiness supply chain to meet the demand for healthier, great-tasting food and ingredient options that are both widely accessible and sustainable.
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To facilitate its Chapter 11 process, in addition to having the use of its existing cash reserves, Benson Hill has received a commitment of approximately $11 million in debtor-in-possession financing. Following court approval, the firm expects this financing to provide the necessary liquidity to support operations throughout the Chapter 11 process.
The company has filed a variety of “first-day” motions containing customary relief intended to support the company’s ability to continue its ordinary course of operations, such as continuing to service its customers and honor its obligations to its remaining employees, as the company begins its efforts to sell its assets.
In 2022, Schnuck Markets Inc. signed a supplier agreement with Benson Hill to use its Veri brand of soybean cooking oil in the prepared food operations of the St. Louis-based grocery chain’s more than 100 stores across Missouri, Illinois, Indiana and Wisconsin.
“Benson Hill has made significant strides in advancing our seed innovation portfolio by developing soybeans with enhanced compositional traits that deliver value creation for end users and improved sustainable solutions for growers,” said Dan Jacobi, chairman of the board of directors of St. Louis-based Benson Hill. “We have worked diligently to transform our business, including reducing costs, divesting assets, retiring debt and optimizing our operations by transitioning to a licensing model. 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.”
Faegre Drinker Biddle & Reath LLP is serving Benson Hill as legal counsel, and Piper Sandler & Co. is serving the company as investment banker.
