Friday, November 13, 2020 11:44:33 AM
The continuing story of BioAmber Inc. is far more complicated and nuanced.
In this story, BioAmber Inc. (i.e. where the shares are) is the parent company of BioAmber Sarnia Inc. and BioAmber Canada Inc., the two Canadian subsidiaries. BioAmber Inc. is a US Company. Each of these companies is a separate legal entity.
Debts are tied to each company on their own unless there is a specific contractual commitment stating otherwise (see image below). This is a cross-border scenario and the reason for the statement by PwC that this is a complex restructuring.
BioAmber Inc.,(i.e. where the shares are) has required relatively little attention as the assets for this company far exceeded liabilities as documented in the initial Chapter 11 court filings. (see image below)
The patents, trade secrets, R&D breakthroughs, and Supply Contracts are owned by BioAmber Inc.,(i.e. where the shares are). These were part of the "substantially all" asset sale in the Visolis Transaction, which must necessarily require a second step, (and which was specifically defined in the Request For Binding Offers).
At no time in the entire process was there an amendment to articles for the cancellation of shares, and to this date those same shares have yet to be deemed worthless by the courts.
Again, BioAmber Inc. checked the box that funds will be distributable to unsecured creditors (see image above, it is highlighted in yellow with a little square box next to it; that little square box is completely filled in black. The words next to that box read, "FUNDS WILL BE AVAILABLE FOR DISTRIBUTION TO UNSECURED CREDITORS"). Given that fact, the US Courts would have no debts to expunge for BioAmber Inc. (i.e. where the shares are).
For these reasons the Chapter 11 was dismissed upon recognition of the CCAA (Companies Creditors' Arrangement Act), and the Motion filed in US Courts by the Foreign Representative specifically states this is in the best interests of equity holders of BioAmber Inc. (i.e. where the shares are).
Do Govern Yourselves Accordingly.
In this story, BioAmber Inc. (i.e. where the shares are) is the parent company of BioAmber Sarnia Inc. and BioAmber Canada Inc., the two Canadian subsidiaries. BioAmber Inc. is a US Company. Each of these companies is a separate legal entity.
Debts are tied to each company on their own unless there is a specific contractual commitment stating otherwise (see image below). This is a cross-border scenario and the reason for the statement by PwC that this is a complex restructuring.
BioAmber Inc.,(i.e. where the shares are) has required relatively little attention as the assets for this company far exceeded liabilities as documented in the initial Chapter 11 court filings. (see image below)
The patents, trade secrets, R&D breakthroughs, and Supply Contracts are owned by BioAmber Inc.,(i.e. where the shares are). These were part of the "substantially all" asset sale in the Visolis Transaction, which must necessarily require a second step, (and which was specifically defined in the Request For Binding Offers).
At no time in the entire process was there an amendment to articles for the cancellation of shares, and to this date those same shares have yet to be deemed worthless by the courts.
Again, BioAmber Inc. checked the box that funds will be distributable to unsecured creditors (see image above, it is highlighted in yellow with a little square box next to it; that little square box is completely filled in black. The words next to that box read, "FUNDS WILL BE AVAILABLE FOR DISTRIBUTION TO UNSECURED CREDITORS"). Given that fact, the US Courts would have no debts to expunge for BioAmber Inc. (i.e. where the shares are).
For these reasons the Chapter 11 was dismissed upon recognition of the CCAA (Companies Creditors' Arrangement Act), and the Motion filed in US Courts by the Foreign Representative specifically states this is in the best interests of equity holders of BioAmber Inc. (i.e. where the shares are).
Do Govern Yourselves Accordingly.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
