Amyris, an Emeryville, Calif.-based cosmetics ingredients supplier, is working with restructuring advisors as its performance continues to struggle and cash reserves wane, according to sources.
Amyris is working with Pachulski as legal advisor, the sources said. The company listened to pitches from investment banks that specialize in restructuring last week, they added.
Amyris
previously announced on June 5 that it had tapped the business recovery services unit of PricewaterhouseCoopers to execute a transformation program to accelerate improvements to its cost and capital structure and liquidity.
Amyris said during its first-quarter 2023 earnings call on May 9 that it had initiated a strategic review of all aspects of its cost structure in support of its Fit-to-Win initiatives and was working closely with PwC to define a transformation program. The company said it had also established a Transformation Office, which oversees various workstreams to deliver its planned cost reduction target of approximately $250 million from cost of goods sold, operating expense, including a reduction in force, and a simplification of its business portfolio.
As of March 31, Amyris
reported cash and cash equivalents of $11.2 million compared with $64.4 million as of Dec. 31, 2022. First-quarter 2023 core revenue of $56.1 million decreased 3% on a year-over-year basis but exceeded guidance by 12%. Adjusted EBITDA of negative $101.2 million marked a $5.3 million improvement on a year-over-year basis and a $53.3 million sequential improvement compared with the fourth quarter of 2022, which Amyris attributed to lower operating expenses, including lower marketing and media spending.
In the same June 5 announcement, Amyris said that it had entered into loan amendments with its principal secured lenders, Foris Ventures LLC and DSM Finance BV, that resulted in a waiver of all existing defaults, therefore ending the forbearances previously entered into with the same parties.
Amyris also entered into a secured term loan facility last month with Anesma Group LLC, an affiliate of Foris, whereby Anesma made available to the company up to $50 million, which was then partially drawn by Amyris on June 5. Amyris noted that it intends to use the loan for working capital and general corporate purposes.
Amyris
announced on June 26 that John Melo resigned as president and chief executive officer, effective immediately, and that the company’s board of directors appointed Han Kieftenbeld as interim CEO. Kieftenbeld will remain chief financial officer.
The company’s capital structure also includes $690 million of convertible notes due 2026.
Amyris declined to comment. Pachulski and PricewaterhouseCoopers did not respond to requests for comment.
--Patrick Fitzgerald, Harvard Zhang