Benson Hill, Inc. (Nasdaq: BHIL), a leading seed innovation company, has received court approval for its initial “first-day” motions following its voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware granted these approvals on March 20, 2025, ensuring that Benson Hill can continue its business operations with minimal disruption while it undergoes financial restructuring.
These approvals play a crucial role in allowing Benson Hill to maintain its commitment to delivering innovative soybean seed genetics and high-quality soy traits that enhance feed, food, and fuel production. The company aims to stabilize its financial foundation and preserve value for all stakeholders while navigating the Chapter 11 process.
Key Approvals and Their Impact
The court’s orders enable Benson Hill and its affiliated debtors to continue their daily operations and fulfill key financial obligations. The following approvals were granted to support business continuity:
- Debtor-in-Possession (DIP) Financing
The company secured access to up to $11 million in DIP financing from its existing lenders. The financing group includes notable investors such as Expedition Ag Holdings, S2G Investments, Steve Kahn, and ProAgInvest. An initial $3 million has been made available immediately to cover critical expenses, including payroll and vendor payments. This funding ensures that Benson Hill can sustain essential operations without interruption. - Employee Wages and Benefits
The court granted Benson Hill authorization to continue paying employee wages and benefits as usual. Employees will not experience any disruptions in their salaries, health insurance, or other benefits, which is vital for maintaining workforce morale and productivity during the restructuring period. - Payments to Key Business Partners
To ensure the seamless continuation of its supply chain and operational functions, Benson Hill received permission to honor prepetition obligations to essential business partners. This includes critical vendors, suppliers, shippers, and warehouse providers with administrative expense claims under section 503(b)(9) of the U.S. Bankruptcy Code. By securing this approval, the company aims to maintain its supplier relationships and prevent operational bottlenecks. - Cash Management and Routine Business Operations
Benson Hill was granted authorization to maintain its existing cash management systems, bank accounts, and general business operations. This decision allows the company to continue processing payments, handling transactions, and managing financial affairs without unnecessary disruptions. - Legal Protections for DIP Lenders
The court also approved legal protections for DIP lenders, including the ability to credit bid for assets in the event of default. These protections provide confidence to the lenders supporting Benson Hill’s restructuring process.
Leadership Perspective
Benson Hill’s Interim Chief Executive Officer, Dan Cosgrove, expressed optimism about the court’s approval of these motions, emphasizing the company’s commitment to stabilizing its financial position while continuing to serve customers and partners.
“These approvals give us the opportunity to maintain momentum while we take the necessary steps to restructure our financial foundation,” Cosgrove stated. “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.”
Cosgrove reaffirmed that Benson Hill’s leadership team is dedicated to steering the company through this transitional period with minimal disruptions. He also highlighted the continued support from investors, employees, and business partners as a key factor in the company’s ability to sustain operations during the Chapter 11 process.
Next Steps in the Chapter 11 Process
A final hearing is scheduled for April 16, 2025, where the court will consider full approval of the DIP financing and vendor-related motions. If granted, this final approval will provide Benson Hill with additional financial stability and ensure that it can continue its restructuring efforts effectively.
The company’s restructuring plan is expected to include evaluating strategic options for its assets, optimizing operational efficiencies, and implementing financial strategies that will position it for long-term viability.
Ongoing Business Operations and Customer Commitments
Despite the financial restructuring, Benson Hill remains committed to its mission of advancing agricultural innovation through its proprietary soybean seed genetics. The company continues to engage with customers, suppliers, and industry partners to ensure uninterrupted product development and delivery.
Benson Hill’s core business operations, including research and development, product commercialization, and supply chain management, will continue as usual throughout the Chapter 11 process. The company has reassured stakeholders that it remains dedicated to providing high-quality agricultural products that enhance sustainability and productivity in the food and farming industries.
Customer and Stakeholder Support
Benson Hill has set up resources to assist stakeholders during this period. Customers and partners seeking more information about the Chapter 11 process can visit the website maintained by the company’s claims agent, Stretto. This platform provides details on court filings, key dates, and other relevant information to ensure transparency throughout the restructuring process.
Industry Implications and Future Outlook
The restructuring of Benson Hill comes at a time when the agricultural biotechnology sector is undergoing significant transformations. Advances in seed genetics, sustainable farming practices, and market dynamics are reshaping the industry, creating both challenges and opportunities for companies like Benson Hill.
By leveraging its proprietary technology and strategic partnerships, Benson Hill aims to emerge from this restructuring process as a stronger and more financially resilient entity. The company’s leadership is focused on aligning its operations with market demands, optimizing its financial structure, and continuing to innovate in seed genetics and soy quality traits.
