Cape Town, South Africa-based AgriProtein’s parent company, the Insect Technology Group, has entered administration in the United Kingdom.
AgriProtein was founded in 2008 with the goal of raising black soldier fly larvae for use in agriculture and aquaculture. Its primary product, MagMeal, is marketed for fish aquaculture.
The company had expanded internationally and had planned to develop 20 fly farms in North America, as part of a larger goal of building 100 fly farms by 2024 and 200 by 2027. It had previously signed agreements to build three fly farms in Saudi Arabia, and had received several international licenses to use its technology in Asia, Australia and elsewhere in the Middle East, Drew said.
In an email to SeafoodSource, AgriProtein Co-Founder Jason Drew confirmed ITG’s entrance into administration.
“This is the U.S. equivalent of Chapter 11,” he said. “We are unable to comment on the administration process. [Once it] is complete, [we’ll be] happy to engage further at that point.”
ITG’s assets consist of ITGPro Support Service India, Insect Technology Group USA, AgriProtein Singapore PTE, The Insectory B.V., and Circular Organics N.V.
According to U.K. records, ITG initially filed for administration on 22 February, 2021. The move was initiated by Twynam Investments, the secured creditor of ITG, "due to the changing financial position of the companies and the withdrawal of future potential funding."
According to the company’s filing document, the company’s officers have met with representatives of ITG’s primary creditors. At a 17 May virtual meeting, the company’s creditors voted against forming a creditors’ committee, but they did approve a proposal by ITG’s joint administrators – Brian Johnson and Peter Kubik of Hacker Young LLP – to consider both refinancing and restructuring options, as well as a sale of the business and its assets.
ITG suffered a bottom-line operational loss of USD 26.2 million (EUR 21.5 million) in 2019 and a loss of USD 488,600 (EUR 400,800) in 2020, according to financial information provided in its filing. Collectively, ITG’s subsidiaries owe ITG more than USD 23 million (EUR 18.9 million), with Agriprotein Technologies (PTY) Limited owing USD 19.5 million (EUR 16 million) and AgriProtein (Gibraltar) Limited owing USD 4 million (EUR 3.3 million). The firm’s subsidiaries have outstanding third-party loans valued at nearly USD 15 million (EUR 12.3 million).
Photo courtesy of AgriProtein
