BioAmber’s Canadian subsidiary BioAmber Sarnia entered into a waiver and amending agreement to its current loan agreement with its senior lending syndicate.

According to a related 8-K filing, Comerica Bank is acting as administrative agent.

This amendment to the loan agreement removes certain financial covenants under the terms of the loan agreement with the senior lenders, namely a minimum cash requirement and ongoing revenue covenants.

The senior lenders also agreed to waive all violations under the loan agreement, and the company agreed to present to the lenders a recapitalization plan by March 15, 2018. Additionally, the company agreed to engage a consultant to monitor its cash flows and to provide to the lenders weekly reports on its activities and monthly financial reports. It will engage an appraiser to conduct a valuation of its Sarnia facility before January 31, 2018 and will postpone any interest and capital payments to its subordinated lenders to the earliest to occur of December 31, 2018, the time at which the secured obligations under the loan agreement are paid in full. Further, the company will not increase senior management compensation arrangements or pay bonuses to the senior management team, nor make payments other than as contemplated by the company’s weekly cash flow projections.

“Our lending syndicate has been a key supporter of BioAmber from the construction phase through to today. These amendments eliminate certain restrictive financial covenants that we had in our loan agreement, release a minimum cash requirement and support the overall growth of our business,” said Richard Eno, CEO, BioAmber.

BioAmber is a renewable materials company.