Zymergen, committee reach agreement on new bid procedures

By Sarah Lizee

Olympia, Wash., Nov. 14 – Zymergen Inc. and its official committee of unsecured creditors have reached an agreement on revised bid procedures for the company’s assets, according to a term sheet filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company lined up a stalking horse agreement with current owner Ginkgo Bioworks Inc. that originally included a cash purchase price of $5 million plus assumed liabilities.

The committee filed an objection to the proposed bid procedures on Thursday, questioning the fairness of the bid procedures.

However, the company and committee were able to work out new terms, resulting in an increased stalking horse bid of $7.5 million.

The new terms also provide for the assumption of a non-residential real property lease that has an approximate $5 million benefit to the estate through the return of a cash collateralized letter of credit and claim elimination.

Gingko also agreed to acquire all estate claims against itself.

The Emeryville, Calif.-based biotech company filed bankruptcy on Oct. 3 under Chapter 11 case number 23-11661.

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