After a fifth attempt to auction off the assets of Bologna, Italy-based PHA producer Bio-On failed in March, the bankruptcy trustees have once again lowered the reserve price and are trying again.
The Bankruptcy Court of Bologna has issued a new auction notice for the sale of the assets of the company and plants, including the polyhydroxyalkanoate (PHA) bioplastic production plant located in Castel San Pietro Terme, as well as the laboratories and warehouses, patent portfolio, shareholdings and movable assets, setting the reserve price at a bargain 23.7 million euros ($25.5 million), almost 8 million euros ($8.6 million) lower than the auction held in March and less than a quarter of the initial price, set in May last year of 94.9 million euros ($102.4 million).
All offers must be submitted by May 3 Any envelopes containing received offers will be opened on May4.
Interested parties can consult all relevant documentation on the site of the defunct company under the Investor Relations tab. However, all attempts to dispose of the company have hitherto been met with indifference by the market, with no bids having been received by the trustees.
Bio-On came under severe financial pressure and legal investigation following a 2019 report from analysts that claimed Bio-On was "a house of cards" and "a massive bubble based on flawed technology and fictitious sales thanks to a network of empty shell companies.”
The value of Bio-On shares fell 50 percent and trading was suspended. Italian prosecutors then opened a probe over the alleged market manipulation and accounting irregularities at the company. Five months later, in December 2019, the company was declared bankrupt.