Montreal, Canada — LCY Biotechnology has bought many of BioAmber’s assets. The Canadian bio polyol company is being liquidated.
The purchase included all of BioAmber’s assets except for cash, accounts receivable and inventory.
Both the Quebec Superior Court of Justice on 18 September and the United States Bankruptcy Court for the District of Delaware on 9 October 2018 approved the transaction.
PricewaterhouseCoopers (PWC) is acting as the court-appointed monitor for the biopolyol maker. However, it warned that there could be no money for unsecured creditors and equity investors at the end of the liquidation process. This is because secured creditors have a higher claim for any cash from the deal, according to PWC.
The Canadian company applied to the courts in August for permission to liquidate. It had been trying to find a buyer as a going concern after making losses in 2016 and 2017. Earlier this year, the business filed for Chapter 11 bankruptcy protection.
At the time, Richard Eno, Chief Executive Officer said: ‘This process will provide time and stability to restructure our finances.’