BioNitrogen Holdings Corp. announced it is shutting down all corporate activity and that Chairman and Chief Executive Officer Graham Copley has resigned. The move comes two years after the company filed for Chapter 11 bankruptcy protection.
The Miami-based tech company announced the results of its chapter 11 process on June 27, saying it was unable to reorganize under protection of chapter 11. There were no bidders for its business, the company was not able to raise fresh capital, and ceased all operations, effective immediately. The company’s stock will be delisted from the OTC exchange.
The company summed it up nicely: “it has been concluded that there are no business opportunities for BioNitrogen given its lack of both assets and cash.”
BioNitrogen was seen as the “Tesla of fertilizer.” The company operated as so-called clean-biotechnology company and produced fertilizer out of agricultural waste instead of using natural gas.
When the company filed for Chapter 11 in November 2015, it said it had an estimated debt of $3.5 million and assets worth between $1.0 million ando $10.0 million. At the time, BioNitrogen said it had been working toward building plants.
Assets included intellectual property that came from extensive research and development. In October 2015, BioNitrogen was hit with a default judgment in favor of Canadian company Annon Consulting Inc., which provided BioNitrogen with a loan of $845,000 at 30% interest rate in December 2013. The resulting debt is claimed to be at $1.4 million, according to the company’s bankruptcy court papers.
As recently as May 2017, BioNitrogen was giving investors reason to cheer. In an update to its Chapter 11 proceedings, the company said it achieved “major milestones.” On May 24, the Federal Bankruptcy Court in Miami granted BioNitrogen the exclusive right to propose a plan of restructuring for a further 90 days.
The same day, the company received a letter of proposed partnership (based on successful reorganization) from one of the leading global industrial gas companies.
Potential investors were also provided with complete short-term and longer-term financial expectations for the project currently underway in Taylor County, Florida, as well as for the company as a whole.
Add it up. BioNitrogen had a place to build its first facility; financial assistance from both the county and state and land, transportation and utility agreements with the former; and a top strategic partner interested in assisting with engineering oversight, iamong other things.
Copley said the company expected to start construction on the property in six months after successfully completing its Chapter 11 reorganization.
But it was not to be. The company was unable to reorganize under Chapter 11 and has ceased all operations.
“BioNitrogen Announces Results of Chapter 11 Process, The Shutdown of All Corporate Activity and the Resignation of Chairman and CEO, Graham Copley,” BioNitrogen Holdings Corp., June 27, 2017.
“BioNitrogen Files for Chapter 11 Bankruptcy Protection,” The Wall Street Journal, November 4, 2015.
“BioNitrogen Holdings Corp. Achieves Further Major Milestones,” BioNitrogen Holdings Corp., May 27, 2017.