Fayetteville, Arkansas -- BioBased Technologies, the manufacturer of Agrol -- a line of bio-based polyols for spray polyurethane foam (SPF) insulation, has begun implementing its plan of reorganisation following approval from the Federal Bankruptcy Court. The company filed for Chapter 11 protection in Oct 2009.
BioBased said the plan, which includes a $2.8 million investment from a private investor from northwest Arkansas, and an additional $1.5 million line of credit, allows it to fully pay all trade creditors and ensures continued funding for the company.
"In today's business climate, filing for Chapter 11 is not that rare," said Michael Johnson, chief legal officer for BioBased Technologies, in a 12 Feb company statement. "But we do realise that actually completing the process -- securing funding, developing a reorganisation plan and implementing that plan -- is rare. We will not only continue operations, but we will actually be a stronger, more viable company because of this," Johnson added.
Originally established as multiple companies, all operations have now been reorganised, refocused and consolidated under the BioBased Technologies umbrella, the statement said.
Despite opportunities to enter new markets, the company said it now needs to focus on its core strategies. "Moving forward everything we do will be focused on growing our polyol and spray foam insulation businesses," said Robert Porter, BioBased vice president of sales and marketing.
Looking ahead, BioBased said its Insulation Division has "a variety of new products under development."
"We have made the decision to significantly invest behind the research and development of new and improved insulation products that will meet the future needs of insulation and general customers," said Steve Dixon, sales director for the Insulation Division.
The Fayetteville-based company has introduced open-cell foam insulation product, BioBased 502, and bio-based foam sealant, BioBased 3001, domestically this year.
In January, BioBased chose Archway Sales to be the distributor of its Agrol soya-based line of polyol in the US. (RD)