BioAmber Inc fka BIOAQ

[Koan]

Under CCAA and the Bankruptcy and Insolvency Act, CCAA does not strictly require that the interests of each class be considered in order.

Yes, this is correct!

The following statement is sourced from a multinational law firm:

The CCAA has been referred to as the Canadian chapter 11, referring to US Bankruptcy Code chapter 11 proceedings, but there are important differences. For instance, CCAA protection is not automatic and there is no ability to “cram down” classes of creditors by seeking court authorisation. The absolute priority rule and equitable subordination do not exist in Canada.

And given this:

What that means is that the interest of other stakeholders (i.e., Canadian JOBS, which was the primary purpose of enacting CCAA in the first place) are considered ahead of providing the maximum recovery for each class in order.

So, here is the question:

Do any of the secured or unsecured creditors (who are agreeing to the terms of the APA), or employees or former employees (for which the CCAA places emphasis) have an equity interest (versus their equity claim) in BioAmber?

In other words, are any secured or unsecured creditors, employees or former employees also shareholders, such that they have both an equity claim and an equity interest?

After all, as has been stated the CCAA permitted the 4.3 million bid which keeps the plant open; this opens the door to maintain and preserve the executory contracts, namely the Vinmar agreement. If the goal is to provide the maximum possible recovery for these classes of creditors, it would appear prudent to take efforts to protect the common stock, which some of them have interest.