Benson Hill files for chapter 11 bankruptcy, seeks asset sale

Benson Hill Inc, a seed innovation company that was named Overall FoodTech Company of the Year in 2021, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. In its announcement, the company stated that it and its subsidiaries have voluntarily initiated the process, with plans to pursue a sale of its business under Section 363 of the Bankruptcy Code. As part of this effort, Benson Hill aims to sell all or a portion of its assets while continuing to support its farmers, partners, and customers throughout the proceedings.

To maintain operations during the bankruptcy process, Benson Hill has secured a commitment of approximately $11 million in Debtor-in-Possession financing. The company anticipates that, upon court approval, these funds will provide the liquidity needed to continue business operations. Additionally, it has filed several “first-day” motions, which are intended to ensure continuity in serving customers and fulfilling obligations to its remaining employees.

In addition to the Overall FoodTech Company of the Year award, given by AgTech Breakthrough, Benson Hill has been visible in recent years across the food technology sector, including speaking at events such as the AgTech NEXT Summit and launching its Food Systems Innovators Program.

Dan Jacobi, Chairman of the Board of Directors of Benson Hill, acknowledged the challenges that led to the company’s decision.

“Despite our efforts, a combination of industry challenges and financial constraints has led the Board to determine that a process under Chapter 11 is the best path forward,” he stated. Jacobi also highlighted the company’s efforts to transform its business by reducing costs, divesting assets, retiring debt, and shifting toward a licensing model.

Court filings and updates regarding the case can be accessed through the company’s claims agent, Stretto Inc.

Benson Hill stated that it does not intend to update its bankruptcy statements unless required by law.

Benson Hill specializes in seed innovation, leveraging proprietary genetics and technology platforms to enhance soybeans and improve agricultural sustainability. The company utilizes its AI-driven CropOS technology platform and Crop Accelerator to optimize seed development, aiming to create soybeans with enhanced compositional traits that benefit growers and end users.