Miami—The U.S. Trustee in BioNitrogen Holding Corp.’s Chapter 11 bankruptcy case (GM Nov. 9, 2015) has filed to convert the case to Chapter 7 liquidation and has objected to a motion by BioNitrogen to dismiss the Chapter 11 case.
The trustee argues that after nearly 18 months in Chapter 11 the company has been unsuccessful in finding financing or a strategic partner necessary for a reorganization. The trustee also objects to BioNitrogen’s motion to dismiss the case, arguing that the company’s plan to transfer its most valuable assets – its patents and trademarks – to Annon Consulting Inc., Boca Raton, Fla., is in violation of the priority scheme of the Bankruptcy Code, and also noted that there are other creditors in line for BioNitrogen assets.
BioNitrogen had hoped to use clean technology to produce urea from biomass. Two sites had already been selected in Florida.