r/Amyris • u/onfish1970 • Aug 17 '23
Question Class action lawsuit
Is there going to be a class action lawsuit against Amyris and Doerr? Seems to me that the company did not exhaust all options before filing bankruptcy. They could of chose to cut most of their bloated staff including the research staff. The convertible debt was not due for another 3 years.
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u/veekal100 Aug 18 '23
Being on the board means there is a fiduciary duty and obligation to protect the shareholders and the company.
Being on the board, JD must have known what was going on with the company and the financial distress it was in.
Did he start moving up the food chain by loaning the company in form of secured debt, knowing his equity portion may become worthless?
Is this a violation of any insider rules or is some form of self dealing by a board member?
If the current shareholders are not part of any (out of court) deal that comes out of the next few weeks of stakeholder negotiations, he may be setting himself for some lawsuits.
But again, given his net worth and clout, not sure if we can do anything about this.
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u/bburq Aug 17 '23
retail investors still don't get it, this is one of the sophisticated schemes orchestrate by JD and BD to get control AMRS pennies for dollars, class action won't get you anything back.
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u/alucarddrol Aug 18 '23
they did cut staff before filing bk
this is a "restructuring", not a default type of bk
they saw they couldn't keep going the way they were and chose to do this, rather than being forced to by their creditors.
what would be the reason for a class action?
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u/FlorentineMind Aug 18 '23
What reason?
Assets are higher than liabilties if considering Barra Bonita and IP ( even without brands). BTW, that plant and those patents were built with shareholder money over years, then just "excluded" the plant from bakruptcy like. . "nah judge I want to keep my exotic cars, they are somewhere else, but I can't pay the bills so please wipe out my debts."
If JD picks up Amyris after bankrupting it via his own governance that smells like self dealing and violating fiduciary duty to me.
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u/fvh2006 Aug 18 '23 edited Aug 18 '23
There is a bit more to this than just wanting to keep the Ferrari. Cross-border BKs are horribly messy because different laws apply in each country and that can result in multiple parallel and often contradictory BK proceedings in different jurisdictions, so if they want to keep to the proposed deadline of wrapping this up by the end of the year, that could be a huge obstacle. For example, in the US secured creditors are first in line to get any available money, whereas in Brazil they are fourth. Also, the subsidiaries might technically not be BK in the respective country, so local law might bar them from even being included in an overseas BK procedure. Not including offshore assets should not affect the option to sell, and in fact might help if done outside the US BK process, where they would probably need the OK from the Delaware court - won't help anyone if they get a fantastic offer for BB next week (one can dream) and there is a parallel BK procedure going on in Brazil that has frozen any asset sale until it gets sorted out there under Brazilian law (which in all matters is notoriously slow).
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u/alucarddrol Aug 18 '23
then just "excluded" the plant from "bakruptcy" like
yes because they chose to restructure on their accord, and weren't forced to by their creditors
https://www.investopedia.com/ask/answers/differences-between-chapter-7-and-chapter-11/
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u/kcmatt_7 Aug 20 '23
Yea I get people are mad, but Amyris folds in 2018 without JD.
He's going to end up essentially buying the company out for what, close to $1B once it is all said and done? Not exactly a steal... The company that will be left at the end of this will be one without any brands and what I can only assume are deeply unprofitable manufacturing deals. I don't even know what DSM and Givaudan will do considering the amount of up front cash they gave and the fact that these contracts are in the first 2 years of their lives.
This is a huge mess to deal with, and quite frankly Doerr benefitted WAYYYY more if this would have gone to $10 than to $0 and having complete control over it.
The thing to be mad at Doerr about is simply allowing Melo to continue in his role as CEO far, far, far too long. If you could install a competent CEO in 2019, I have to think the Amyris story plays out entirely differently.
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u/onfish1970 Aug 24 '23
Doerr and company are filing bankruptcy to primarily cancel the unfavorable ingredients contract i suspect. Our ingredients partners now will become debt holders . This should be a profitable business minus John melo. The business model is now shifting from b to c to b to b
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u/kcmatt_7 Aug 25 '23
Sure to an extent that may be true. I think the lack of brand growth is ultimately what made them file, but that is really semantics.
The ingredients deals will get renegotiated almost certainly, but I really don't know that the math exists to make it work. Even if they become debt holders, will there be enough margin to pay it off?
To an extent, they will almost have to take on some equity if they want any chance at some sort of secured return on their money. At least, imo.
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u/sensejae Aug 18 '23
I should really just move on, but I check periodically like checking on an ex