Benson Hill, which had been a rising star in St. Louis’ AgTech ecosystem, is seeking Chapter 11 bankruptcy protection, the company announced Thursday.
In filings with the United States Bankruptcy Court in the District of Delaware, the public company reported having about $137.5 million in assets, $110.7 million in debts and more than 200 creditors.
The filings lay out the company’s proposal to approve about $11 million in debtor-in-possession financing from S2G Investments, Expedition Ag Holdings, Steve Kahn and ProAgInvest. Benson Hill expects the financing to help the company with liquidity during the Chapter 11 process.
The proposals also include the company’s intention to terminate its current chief executive officer, chief financial officer and chief technology officer, tapping current Chief Administrative Officer and General Counsel Dan Cosgrove to lead the transition during its bankruptcy process.
Benson Hill, which was founded in 2012, achieved a multibillion-dollar valuation when the company went public in 2021. It’s best known for its innovation in adding specific traits to plants, like boosting the protein in soybeans and using artificial intelligence for seed innovation, which Dan Jacobi, chairman of Benson Hill’s board of directors, noted in a statement.
“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,” Jacobi said. “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.”
Thursday’s court filings require approval from the bankruptcy court before the company can move forward with its plans. That approval could come later this week or early next.
