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ST. LOUIS - Benson Hill, Inc. (NASDAQ:BHIL), a seed innovation firm whose stock has declined nearly 95% over the past year according to InvestingPro data, received U.S. Bankruptcy Court authorization for its "first-day" requests after filing for Chapter 11 on March 20, 2025. The court’s decision facilitates Benson Hill’s operational continuity and financial restructuring.
The court’s orders permit Benson Hill to continue its daily operations, including accessing up to $11 million in debtor-in-possession (DIP) financing from its lenders, with $3 million available immediately. This financing will cover critical expenses such as payroll and vendor payments. InvestingPro data shows the company carried a substantial debt burden of $94.4 million as of the latest quarter, with a concerning cash burn rate that likely contributed to the current situation.
Employees will continue to receive their wages and benefits without interruption. The company is also authorized to meet prepetition obligations to key partners, such as vendors and suppliers, ensuring operational continuity.
Benson Hill can maintain its cash management systems and bank accounts, and DIP lenders are granted legal authorization to credit bid for assets, subject to standard protections in case of default.
Interim CEO Dan Cosgrove stated that these approvals allow the company to maintain momentum while restructuring its financial foundation. The focus remains on delivering value to customers and partners and positioning the business for long-term success.
A final hearing for the approval of the full DIP financing and related vendor motions is set for April 16.
Benson Hill, known for its soybean seed genetics and soy quality traits, aims to deliver improved feed, food, and fuel through its proprietary genetics and AI-driven technology. The company collaborates with strategic partners across the agribusiness supply chain. Financial metrics from InvestingPro reveal challenging fundamentals, including a weak gross profit margin of 4.29% and negative EBITDA of -$45.2 million in the last twelve months. Subscribers can access 20+ additional ProTips and comprehensive analysis through the Pro Research Report, offering deeper insights into companies like Benson Hill.
This news is based on a press release statement and contains forward-looking statements subject to risks, uncertainties, and other factors that could affect the company’s actual results. Benson Hill advises against placing undue reliance on these forward-looking statements, which are only valid as of their date.
In other recent news, Benson Hill, Inc. has filed for Chapter 11 bankruptcy and is actively seeking to sell its business. The filing was made in the United States Bankruptcy Court for the District of Delaware. As part of the bankruptcy proceedings, Benson Hill has secured approximately $11 million in Debtor-in-Possession financing, pending court approval, to support its operations during this period. The company has also submitted several first-day motions to ensure the continuation of its business activities, including servicing customers and meeting employee obligations. Despite efforts to transform its business through cost reductions and other strategies, Benson Hill faced industry challenges and financial constraints that led to the bankruptcy filing. Chairman Dan Jacobi stated that this step is viewed as the best path forward under the current circumstances. Legal representation for Benson Hill is provided by Faegre Drinker Biddle & Reath LLP, with Piper Sandler & Co. serving as the investment banker during the restructuring process.
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