JEFFERSON CITY, Mo. (DTN) -- Benson Hill, a seed innovation company based in St. Louis, announced March 20 that it filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

The move comes come just days after the company posted a notice of late filing with the U.S. Securities and Exchange Commission informing the federal agency that it was unable to make a "reasonable estimate" of the company's results of operations for a 2024 annual report. Last month, Benson Hill reported to the SEC that it had furloughed more than one-third of its employees and relocated its headquarters office.

The company, which went public in 2021, also disclosed that it intends to pursue a sale of its business under Section 363 of the Bankruptcy Code, including a sale of all or a portion of its assets, while continuing to support its farmers, partners and customers during the Chapter 11 process.

In addition to having the use of its existing cash reserves, Benson Hill has received a commitment of approximately $11 million in Debtor-in-Possession financing. Following court approval, Benson Hill expects this financing to provide the necessary liquidity to support operations throughout the process.

"Benson Hill has made significant strides in advancing our seed innovation portfolio by developing soybeans with enhanced compositional traits that deliver value creation for end users and improved sustainable solutions for growers," said Dan Jacobi, chairman of the board at Benson Hill, in a company statement. "We have worked diligently to transform our business, including reducing costs, divesting assets, retiring debt and optimizing our operations by transitioning to a licensing model. 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."

Benson Hill has filed a variety of "first-day" motions containing customary relief intended to support its ability to continue its ordinary course of operations -- such as continuing to service its customers and honor its obligations to its remaining employees -- as it begins its efforts to effectuate the sale of its assets.

Known for developing specialty soybeans for specific end uses, Benson Hill was founded in 2012. Its portfolio of varieties includes ultra-high protein soybeans, suitable for human food or for processing into soy protein concentrate or soy protein isolate; ultra-high protein, low oligosaccharide soybeans, suitable for use in poultry, swine and aquaculture feed; high oleic, low linolenic oil soybeans, suitable for dairy cows and cooking applications such as baking and frying; and other specialty soybeans.

In a letter to shareholders released last November, Benson Hill CEO Deanie Elsner described 2024 as a transition year for the company as it moved from a "closed-loop business model" to an "asset-light licensing model." The letter included a five-point strategic "roadmap" for the company's evolution that included transitioning out of its legacy business; establishing new partnerships with soy processors, poultry integrators and feed formulators; improving operating expenses and margins; expanding intellectual property and technology capabilities; and optimizing the company's capital structure while focusing on raising capital.

"I remain optimistic about Benson Hill's business trajectory," Elsner wrote at the time. "Our transformation progress has created a resilient framework for the future that combines sustainable innovation, financial discipline and forward-thinking partnerships. The market conditions for animal feed, food, and renewable fuel also suggest sizable opportunities for expanding our genetic market share for the 2025 season, when we expect to plant Benson Hill genetics on more than 450,000 acres."

Faegre Drinker Biddle & Reath LLP is serving as Benson Hill's legal counsel, and Piper Sandler & Co. is serving as investment banker. Court filings and information about Benson Hill's Chapter 11 case can be found here: https://cases.stretto.com/…

Jason Jenkins can be reached at jason.jenkins@dtn.com

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