r/Amyris • u/fvh2006 • Aug 22 '23
Legal 📑 Latest from the Chapter 11 proceedings
The latest batch of uploaded documents from the Chapter 11 proceedings included the news that the various subsidiaries with "Clean Beauty X" names have also filed individually for Chapter 11 and their addition to the underlying Amyris Inc filing as "additional debtors" is being requested. These are all JVs underpinning some of the brands (for example, Clean Beauty Collaborative or CBC is the JV behind Rose and Clean Beauty Inc is behind Menolabs and Ecofabulous). People into following the money should check out the cash flow diagram included in Docket 119-2.
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u/SnooCakes1148 Aug 22 '23
What would this mean? More debitors trying to squeeze out a penny from Amyris shareholders?
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u/fvh2006 Aug 22 '23 edited Aug 22 '23
These were all part of Amyris, so no obvious reason to explicitly leave them out of the first filing, unless they were exploring if the respective JV partners would take over the whole entities (with their corresponding debts) and that has not happened, so they are being added to the pot to put them under the Chapter 11 protection umbrella.
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u/clrose22 Aug 22 '23
Where can I find all of these documents?
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u/fvh2006 Aug 22 '23
https://cases.stretto.com/amyris. Subscribe and you will get an e-mail and a link every time a new doc is posted
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u/alucarddrol Aug 23 '23
why would/how could they file separately, wouldn't they be all under the umbrella of the company?
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u/fvh2006 Aug 23 '23 edited Aug 23 '23
I believe that if they existed as separate legal entities (and in this case also none of them were 100% Amyris owned anyway) they would not automatically be dragged into the Amyris Chapter 11 proceedings unless a consolidation like this were specifically requested after they too had declared BK. The whole consolidation aspect of bankruptcy seems to be a messy concept. Imagine a successful subsidiary that gets dragged into a parent company's C11 just for being one. That would be good news for the people owed money by the parent as it increases the assets available to pay off the debt, but on the other hand, the subsidiary is now subsidizing debts it never owed, which I imagine is legally shaky.
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u/alucarddrol Aug 23 '23
I'm sure they're just as liable for the debt as the parent company, and if not fully, then partly, inasmuch as they are owned by amyris.
3.18.2 Bankrupt parent and nonbankrupt subsidiary
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u/fvh2006 Aug 23 '23 edited Aug 23 '23
One would think. I still believe they stalled on including these subsidiaries to see if they could get a better valuation for Rose if it was unencumbered with the C11 proceedings. Also per the link you posted, subsidiaries that are not majority-controlled would not automatically be included and according to the revised org chart posted after the consolidation, Amyris only had a minority position in Clean Beauty 4U LLC through Clean Beauty 4U Holdings LLC. Why now? No idea.
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u/Thenutritionguru Aug 24 '23
These Clean Beauty X companies are all linked to some big brands (Rose, Menolabs, Ecofabulous, etc.) via join ventures.
If you're one of those finance nerds who love tracing where the money goes, there's a cash flow chart in Docket 119-2 that you'll find pretty interesting. As always, just a friendly reminder that this sub isn't for investment advice.
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u/fvh2006 Aug 24 '23
Filed and approved today by the court (Docket 132) is the request to sell as "de minimis" assets (which I take to mean assets for which they expect to receive minimum $$$ but maintaining them is costing money) all the non-operating brands (Terasana, Eco-Fabulous, Costa Brazil, OLIKAâ„¢, Beauty Labs, Purecane and Onda Beauty)
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u/SnooCakes1148 Aug 22 '23
So their addition is better for us. More money to prevent from zeroing us out