Benson Hill files for Chapter 11 bankruptcy amid financial struggles
The company has secured approximately US$11 million in debtor-in-possession financing to support its operations.
USA – Benson Hill, Inc., a company specializing in soybean seed innovation, has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware, with plans to sell its business.
The bankruptcy filing marks a significant turning point for Benson Hill as it navigates restructuring and potential sale under Chapter 11 protection.
The company has secured approximately US$11 million in debtor-in-possession financing to support its operations through the bankruptcy process, pending court approval.
Financial filings indicate the company’s estimated assets and liabilities each range between US$100 million and US$500 million, with an estimated 200 to 300 creditors.
Dan Jacobi, chairman of the board of directors of Benson Hill, emphasized the company’s efforts to transform its business model.
“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,” Jacobi stated.
He noted that the company had taken steps such as reducing costs, divesting assets, retiring debt, and shifting to a licensing model. Despite these efforts, ongoing industry challenges and financial constraints led the board to determine that Chapter 11 proceedings were the best course of action.
The company has also filed “first-day” motions seeking customary relief to maintain operations, including servicing customers and meeting employee obligations, measures aimed at ensuring business continuity during the restructuring process.
Benson Hill has faced mounting financial difficulties in recent years. In September 2023, the New York Stock Exchange notified the company of non-compliance with its continued listing standards, as its stock price had fallen below US$1 per share for 30 consecutive trading days.
In response to financial pressures, the company divested key assets, including the sale of its soybean crush facility in Seymour, Indiana, to White River Soy Processing, LLC, in October 2023 for US$36 million.
A subsequent sale of its soy processing plant in Creston, Iowa, to the same company in February 2024 netted US$72 million.
Despite these divestitures, financial losses have continued to persist. Benson Hill reported a net loss from continuing operations of US$111 million for fiscal year 2023, followed by a US$66 million net loss through the first three quarters of fiscal year 2024.
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