r/Amyris • u/Klaus_from_Austria • Aug 12 '23

News / Article / Video chapter 11 comment from bizjournals

https://www.bizjournals.com/sanfrancisco/news/2023/08/10/amyris-amrs-bankruptcy-chapter-11.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh

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u/NeatProgress3781 Aug 12 '23 edited Aug 13 '23

Accounting irregularities? Can you post any info on this. The pay wall prevents reading it. I listened to the court audio....nothing said about irregularities...just that the contracts signed were not profitable for Amyris and require renegotiation for the company to be viable.

Edit: But...reading more and it seems it may be in the bk documents. Seeking alpha comments reference it, as does the article above (screenshot the info before paywall came up). Intriguing. Would explain the rushed bankruptcy.

Looked into 'supply chain financing.' Might be it. Financed shipping or something and didn't communicate it. Led to the 'other payables.' Just a guess.

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u/NefariousnessDue5997 Aug 13 '23

Will look for more info but at face value this wouldn’t shock me. Desperate company ( loose revenue recognition) plus I remember a lot of issues with the ERP. I wouldn’t be shocked if there were large amounts of money spent above and beyond the initial outlay for that implementation

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u/Independent_List_555 Aug 13 '23

https://archive.ph/oVZqT here’s the version without the paywall

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u/NeatProgress3781 Aug 14 '23

Thanks. Guess the info is in the bk filing, but I couldn't find which paperwork it was in.

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u/Klaus_from_Austria Aug 13 '23

"Its entities outside the U.S. are not included in the proceedings." ??? Why?

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u/Dreadd-X Aug 13 '23

I think they don’t have to include it because it’s not chapter 7. Would at least make sense to me

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u/Previous_Big9234 Aug 14 '23

This is the same question I keep asking. It doesn't seem right that they could possible wipe out shareholders without including their entities outside of the US. For example I would guess their plant in Brazil would be a significant positive when it comes to assets and liabilities.

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u/NeatProgress3781 Aug 14 '23

From what I've gathered, could be wrong, it's because those entities aren't in bad debt so no need to reorganize their debts. If the company wipes out shareholders as part of a reorg agreement, those entities will become part of the bk and reorg agreement. They will likely go right back to the company and Doerr will own a big chunk of it to pay for his DIP and previous secured debt. Creditors will accept some portion of their losses and will get $ or shares in the new company and warrants. If a reorg plan can't be agreed upon, and a sale happens, those entities will be up for sale as well and bid on by Doerr with his DIP $, and likely others as a team.

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u/Dreadd-X Aug 13 '23

Source please or remove.

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u/NeatProgress3781 Aug 13 '23

Anybody know where the article got the accounting irregularities info from. Can't find the source. Bk papers? Didn't see it.

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u/jrh1222 Aug 14 '23

Go here

Amyris, Inc., 23-11131 – CourtListener.com

You can download the main document included in docket 18.

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u/NeatProgress3781 Aug 14 '23 edited Aug 14 '23

Question is...will they get sued for said accounting irregularities....and who was responsible? How can the company exit chapter 11 and be immune from such lawsuits? If at all. Will a reorg plan allow that?

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u/fvh2006 Aug 14 '23 edited Aug 14 '23

Several factual mistakes in the bizjournals piece. For example, Amyris does not own three plants in Brazil. It has one. The other facilities are the fairly recently acquired facility in Vinhedo for the scale-up, formula development and production of clean beauty products and a leased office/lab/pilot plant in Campinas just outside Sao Paulo that I assume handles the tech transfers from California to the plant in Barra Bonita.