Benson Hill seeks court approval to convert bankruptcy to Chapter 7 liquidation

Published 03/09/2025, 15:34
Benson Hill seeks court approval to convert bankruptcy to Chapter 7 liquidation

Benson Hill, Inc. (NASDAQ:BHIL) filed a motion Tuesday with the U.S. Bankruptcy Court for the District of Delaware to convert its ongoing Chapter 11 bankruptcy proceedings to Chapter 7 liquidation. The company, along with several subsidiaries, has been operating as debtors-in-possession since filing for Chapter 11 protection on March 20, 2025.

The motion, if approved, would shift control of Benson Hill’s remaining assets to a court-appointed trustee, who would oversee the liquidation process and distribute proceeds to creditors according to bankruptcy law. A hearing on the conversion motion is scheduled for September 23, 2025. If the court approves the request, the conversion is expected to take effect as of September 30, 2025.

Benson Hill previously completed the sale of substantially all its assets to Confluence Genetics, LLC on May 23, 2025, under an asset purchase agreement originally signed with a consortium of buyers including Expedition Ag Holdings, LLC and affiliates of S2G Investments, LLC. Since the asset sale, the company has been winding down its remaining business activities.

According to the company’s statement in the SEC filing, Benson Hill does not expect its stockholders to receive any distributions from the liquidation process and believes that its common stock is worthless. The company’s common stock has not traded on the Nasdaq Stock Market since trading was suspended at the opening of business on March 27, 2025. Nasdaq announced on July 2, 2025, that it would delist the stock and file the necessary paperwork with the Securities and Exchange Commission to complete the process.

If the conversion to Chapter 7 is approved, Daniel Cosgrove, the interim chief executive officer, will continue in his role until a trustee is appointed and assumes control, at which point his agreement with the company will terminate.

Benson Hill stated it does not anticipate filing further reports under the Securities Exchange Act of 1934 unless deemed appropriate by the Chapter 7 trustee. This information is based on a press release statement included in the company’s Form 8-K filing with the SEC.

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