Novvi successfully exits Chapter 11 restructuring
Novvi LLC has emerged from a voluntary Chapter 11 restructuring, achieving a significant milestone that sets the stage for renewed growth and innovation as a producer of high-performance renewable base oils and derivatives.
In December 2023, Novvi, which is based in Alameda, California, U.S.A., filed for Chapter 11 bankruptcy in the U.S. District & Bankruptcy Court for the Southern District of Texas. The venue of its bankruptcy filing was influenced by the location of its manufacturing asset in La Porte, Texas, U.S.A. The move allowed Novvi to restructure its debts while maintaining operations. At the time of the filing, Novvi had USD29.7 million in liabilities. Chevron Corp. and H&R Group, two of Novvi’s shareholders, have agreed to convert debt into equity and inject USD25 million in new capital. Its other shareholders are ARG and Amyris.
The company has since restructured its balance sheet to attain financial stability, with the process securing a substantial capital infusion to fund strategic initiatives and operations. Chevron and H&R Group maintained their ownership stakes, reaffirming long-term confidence.
“Our restructure success marks an exciting turning point for Novvi,” said Jason Wells, Novvi president. “With a revitalised outlook, we eagerly plan to keep raising the bar in delivering exceptional service, quality and sustainability to customers.”
Novvi will leverage the reorganisation to drive production efficiencies, enhance competitiveness, and support new product development. The company remains focused on expanding the promise of high-performing biobased solutions as the energy landscape progresses.
Wells emphasised that despite the challenges faced, the trust and collaboration of partners was invaluable in reaching this milestone. He reiterated that client relationships remain Novvi’s top priority amidst its renewed trajectory.
