CORRECTED: BioBased Technologies Files October Earnings

We’ve been keeping you up to date on the transition at BioBased Technologies in Fayetteville.

As of press time, there was no news on the leadership of the company (last issue we told you it would be led by a team of six managers) or if the court was to accept a workout plan that effectively gives two directors control of the company through a single limited liability company in exchange for capital and an extension of credit, but BioBased filed a monthly operating report.

The company filed Chapter 11 on Sept. 1, claiming total liabilities of more than $13 million and assets of about $2.8 million. According to its monthly operating report filed on Nov. 18, the company has reduced its pre-petition liabilities from $13.349 million to $13.112 million as of Oct. 31. Its net income for October was $17,545.

Most of the company’s expenditures were what a normal business would expect. Some of the checks included: $186 to FedEx, $5,353 to CaseStack, $529 to Waste Management, $242 to Sam’s Club and payments to Signature Bank of Arkansas. A loan from Signature that matured triggered the bankruptcy.

But one check stuck out. The company paid Smiley Investments of Little Rock $9,452 on Oct. 1, supposedly for Walter Smiley’s consulting services and expenses. Smiley, you may remember was interim CEO until Nov. 10, when the camp backing Smiley withdrew their application to keep him on as the CEO.

Jennifer Wilson, spokeswoman for BioBased, said Smiley returned that payment in November.

Editor’s Note: An earlier version of this story included errors. This version has been updated and corrected.