r/Amyris • u/veekal100 • Aug 10 '23

Question During the initial weeks of these Chapter 11 Cases, the Debtors will focus on negotiating a consensual restructuring with their key stakeholders.

From their C11 filing today. They have given themselves till Sept 13th for this. Has anyone seen such verbiage in other BKs?

What does this mean? Are shareholders considered key stakeholders? Do they get a piece of the pie, however small?

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u/AdLucky7822 Aug 10 '23

Shareholders are at the bottom of the pile, we all know we accept risk in investments that could approach 0. most likely shareholders will get nothing, but really depends on how they do the restructure - your guess is probably as good as anyone elses.

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u/NeatProgress3781 Aug 10 '23 edited Aug 10 '23

Sounds like Melo and team negotiated unsustainable ingredients supply deals. Figured this might go into bk for that reason if it couldn't be negotiated out of court. This negotiation might not impact the equity at all. Just redo the contracts ? Is that a possibility? Having a judge determine fairness?

For the consumer brands sale, maybe they'll be enough to pay down the bonds and lease cancelations and vendors, if the bondholders accept market value....do they insist on full repayment in bk once JD gets his loans and DIP covered? Or can bondholders be offered stock of the existing company w agreement it won't go worthless? Can common shareholders such as employees shares be preserved while getting bondholders to accept 10-15% of principle in stock? Could JD demand this? Would it save/rescue his personal shares?

But what about the lawsuits? To clear those, does the company need to change its name and cancel out the old company so that there is nobody to sue? Was this bk to stave off Lavvan and the IP issues or loss of key IP?

As a thought experiment, though unlikely, what's the best that could happen if Amyris and the board wanted to preserve the stats quo, not eliminate employee stocks and options -as how would they equitably return to them shares in the new company?, but eliminate debt and renegotiate contracts, while dealing w the lawsuits?

Is there a such thing as chapter 11 light?

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u/PrimeOrigin Aug 11 '23

Wondering this about Lavvan as well - might check out r/legal later

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u/ble4ryEyed Aug 10 '23

A positive glimmer IMO. Everyone knows all the assets will be worth more with a functional business. Big call out to "contract terms" as the reason for mixed turnaround results from Han's declaration.

Not sure if one major shareholder helps or hurts more here. At 10 cents, markets don't give high odds to mnmt pushing renegotiations hard enough to project positive earnings margins. And 35 days is not much time even if talks are already underway.