Global Bioenergies Initiates Buyer Search Amid Financial Challenges

Global Bioenergies Initiates Search for Buyers

Global Bioenergies is embarking on an urgent quest for potential buyers as the company faces significant financial hurdles. Despite diligent efforts to engage with leading industrial companies, the firm has struggled to secure the strategic investments necessary for ongoing operations.

Current Financial Position

As of the latest update, Global Bioenergies has a cash reserve of 3.0 million euros. It is essential to note that the company carries a bank debt of 13.1 million euros, a figure that remains constant since the close of the previous financial year. This ongoing debt situation has only been maintained due to deferrals the company arranged with financial institutions on a month-to-month basis.

Official Buyer Search Launch

Given its precarious cash position, Global Bioenergies will actively pursue a pre-packaged sale, essentially an official search for buyers under a judicial conciliation procedure. This approach allows prospects to acquire all or certain parts of the business along with its assets. The outcome of this plan needs validation from the Commercial Court, which will also oversee the eventual liquidation process if deemed necessary. This scenario faces the risk of rendering shareholders completely liable for losses, particularly concerning bank debts, which even raises the question of the delisting of shares.

CEO's Insights on the Situation

Marc Delcourt, the CEO and co-founder, shared insights into the situation, highlighting the difficulties encountered in financing the company's initial plant project. In late 2024, the focus shifted towards a significant R&D collaboration with a major industrial entity, aimed at developing competitive sustainable aviation fuels by leveraging both companies' technology.

Investor Interactions

Despite initial enthusiasm and engaging dialogues with various potential investors from substantial industrial backgrounds, none have expressed willingness to invest, either as minority or majority stakeholders, particularly given the current geopolitical tensions that hamper investments in climate-friendly initiatives. Consequently, the company is compelled to seek a buyer to preserve its mission.

Potential Outcomes of the Sale Process

The pre-pack sale underscores the unfortunate reality that any proceeds gathered will likely fall short of repaying current shareholders, signaling a total financial loss for many involved. Delcourt, a notable shareholder himself, empathizes with the significant loss that shareholders face during this process.

Exploration of Alternative Options

While alternative options to keep the company operational remain conjectural, the initiation of this sale signals a departure from earlier strategies that could have sustained operations. Even with the pre-pack sale underway, the likelihood of these alternatives coming to fruition is slim.

Timeline for Offers and Next Steps

The deadline for potential buyers to submit offers is set for July 9, 2025. Following this date, the Commercial Court will review submissions and select a buyer, with potential sale closure anticipated in the fall of 2025.

Contact Information for Interested Buyers

Parties interested in this acquisition opportunity should direct their proposals to:

Maître Joanna Rousselet - SCP Abitbol et Rousselet
joanna.rousselet@fajr.eu

About Global Bioenergies

As a committed innovator in the battle against climate change, Global Bioenergies has pioneered a unique method for producing sustainable aviation fuel (SAF) and electro-sustainable aviation fuel (e-SAF) from renewable resources. The company's technology stands out in its certification by ASTM, making it one of the very few recognized solutions geared toward the decarbonization of air travel. Furthermore, its offerings meet the high standards demanded by the cosmetics sector, with L'Oréal as its largest shareholder, holding a 13.5% stake in the firm. Global Bioenergies is officially listed on Euronext Growth in Paris, identified by the ticker Paris: ALGBE.

Frequently Asked Questions

What led Global Bioenergies to seek a buyer?

The company has faced significant financial challenges and was unable to secure strategic investors despite engaging in multiple discussions.

What is a pre-pack sale?

A pre-pack sale is a procedure where a company seeks potential buyers for all or parts of its business as part of a formal reconciliation process.

What are the implications for shareholders?

Shareholders may experience total losses as the anticipated sale proceeds may not be sufficient to cover existing liabilities.

What technologies does Global Bioenergies focus on?

Global Bioenergies focuses on producing sustainable aviation fuels from renewable resources, emphasizing decarbonization in air transport.

How can interested buyers submit offers?

Interested buyers can submit their offers to Maître Joanna Rousselet at SCP Abitbol et Rousselet via email.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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