BIO-LUTIONS undergoes restructuring process with Baker Tilly in debtor-in-possession management

The Neuruppin local court complied with a request of the management and ordered the provisional debtor-in-possession management over BIO-LUTIONS Deutschland’s assets on March 10, 2023. In the course of the debtor-in-possession management, BIO-LUTIONS has initiated an M&A process with the aim of selling the company to a financially strong strategic investor.

The cleantech start-up’s restructuring process is supported by Baker Tilly lawyers Dr. Alexander Fridgen, Partner, and Florian Bandrack, Director. “The debtor-in-possession management enables BIO-LUTIONS to reposition itself. Positive discussions are underway with investors and creditors. We are working together to find a solution and are very confident that we will be able to present a strategic partner in the near future that will ensure the company’s continued existence,” says Bandrack. Prof. Dr. Torsten Martini from the commercial law firm GÖRG has been appointed as provisional administrator.

BIO LUTIONS is a highly innovative cleantech start-up in the field of fiber-based packaging and disposable products, which has built the world’s first industrial dry molding plant. The step into restructuring is due to a liquidity shortage. Due to the changed market environment with increased interest rates, previous investors were no longer able to provide funds despite the product’s great future potential. These previous investors include a leading online delivery service, a development bank and business angels.

The new strategic investor is expected to take the start-up, which is in the run-up phase, to the next stage of development. To that end, it is crucial to pave the way for the next generation of natural fiber products and to enable the next steps in industrial production. In addition to promising talks with various interested parties, another positive sign comes from politicians and local lending banks, who are acting in concert in order to keep the company at the Schwedt site. Today, BIO-LUTIONS still employs 17 people at its production and development site in Schwedt/Oder.

About BIO-LUTIONS

BIO-LUTIONS is a highly innovative cleantech start-up in the field of sustainable, fiber-based packaging solutions. The company specializes in the development and production of biodegradable and recyclable disposable products based on natural fibers. These are manufactured using the innovative dry molding process. By eliminating the need for gas and requiring only minimal water, the process offers great ecological and economic potential. Furthermore, BIO-LUTIONS converts agricultural residues purely mechanically into unique, self-binding natural fibers (fibcro®). This patented process eliminates the need for binders or chemical wood pulping.