Biosys Inc. ceases operations

Maryland Watch

February 04, 1997

Biosys Inc., a Columbia-based producer of natural pesticides, announced yesterday that it has ceased operations now that the company's assets have been sold off in a bankruptcy sale.

Biosys, which filed for Chapter 11 bankruptcy protection in September, said the $11 million that Thermo Trilogy Corp., another Columbia pesticide company, paid for its assets will be distributed to creditors.

That liquidation plan was approved Jan. 7 by the United States Bankruptcy Court in Baltimore.

One of the creditors is the Maryland Industrial Development Financing Authority, which gave Biosys $3 million through its loan guarantee fund.

Biosys said that after the liquidation of all of its assets, the company does not expect that there will be money remaining for shareholders.

Biosys, which employed 130 people, about 45 at the Columbia headquarters, sought bankruptcy protection as a result of unexpected, mounting losses in its second quarter last year.

The closing comes just one year after prospects for the company appeared strong and shares in Biosys closed at a 52-week high of $10.94 on Jan. 31, 1996.

Pub Date: 2/04/97

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