Benson Hill, Inc. announced Tuesday that the U.S. Bankruptcy Court for the District of Delaware has approved its initial "first-day" motions following the company's voluntary Chapter 11 filing on March 20, 2025.
The court's approvals are expected to ensure business continuity as Benson Hill works to strengthen its financial position and continue its innovative soybean seed genetics and soy quality traits development.
Key approvals include:
- Access to up to $11 million in debtor-in-possession (DIP) financing from existing lenders, with $3 million immediately available for critical operating expenses.
- Authorization to pay employee wages and benefits without interruption.
- Ability to honor prepetition obligations to key business partners to maintain operational continuity.
- Permission to maintain existing cash management systems and routine business operations.
- Legal authorization for DIP lenders to credit bid for assets.
Dan Cosgrove, Interim Chief Executive Officer of Benson Hill, stated, "These approvals give us the opportunity to maintain momentum while we take the necessary steps to restructure our financial foundation. We remain focused on delivering value to our customers and partners while positioning the business for long-term success and maximizing value for all of our stakeholders."
The company's DIP financing comes from existing lenders, including Expedition Ag Holdings, S2G Investments, Steve Kahn, and ProAgInvest. This funding will support payroll, vendor payments, and other critical operating expenses.
A final hearing to consider approval of the full DIP financing and vendor-related motions is scheduled for April 16. Benson Hill expects these court-approved measures to allow for minimal disruption to its day-to-day operations as it navigates the Chapter 11 process.
Additional information about the Chapter 11 proceedings is available on the website maintained by the company's claims agent, Stretto, Inc., at https://cases.stretto.com/bensonhill.
