Amyris’ Chapter 11 plan releases draw pushback from U.S. trustee

By Sarah Lizee

Olympia, Wash., Jan. 19 – Amyris, Inc.’s Chapter 11 plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

“The plan leads with a request for approval of non-consensual third-party releases, with the ‘fall back’ of seeking approval of the releases on a consensual basis,” Vara said in the objection.

“The plan is substantially the same in either scenario, with the only substantive difference being de minimis additional cash consideration if the releases are approved on a non-consensual basis.”

The U.S. trustee said that the releases are not necessary to reorganization here because the plan provides expressly that it can be confirmed without approval of the non-consensual releases.

“The debtors thus cannot meet their burden of satisfying the exacting standards for the extraordinary relief of non-consensual releases,” Vara said.

Vara also said that the releases and exculpation are also both impermissibly broad.

The plan confirmation hearing is scheduled for Jan. 24.

Emeryville, Calif.-based Amyris is a synthetic biotechnology company. The company filed bankruptcy on Aug. 9 under Chapter 11 case number 23-11131.

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