Bio Bye-Byed

In a higher profile bankruptcy, you may have read about the BioBased Technologies of Fayetteville. The company has been making soy-based spray foam insulation for several years and is researching other viable commercial avenues for its sustainable polyol products.

Essentially, shareholders are arguing over control of the company through various filings in bankruptcy court.

As a response to questions about the company’s reorganization plan on Nov. 9, Jennifer Wilson, a spokeswoman for BioBased, issued a prepared statement. In it, the company said its interim CEO Walter Smiley would stay on to lead the company if the court approved the reorganization plan.

One camp – the founder and former CEO of the company – had objected to Smiley’s employment, claiming he hadn’t really done much during his tenure.

In an-already-scheduled court hearing on Nov. 10, the camp backing Smiley withdrew their application to keep him on as the CEO.

Wilson said in the meantime, a group of six senior managers will lead the company through the bankruptcy proceedings.

“They just made the decision to do this this morning,” she said on Nov. 10. “They didn’t want to hold up the bankruptcy because of one objection.”