AppHarvest files Chapter 11 bankruptcy
AppHarvest filed for Chapter 11 bankruptcy, referred to as ‘reorganizational’ bankruptcy, with the U.S. Bankruptcy Court for the Southern District of Texas.
Officials said the company will undergo a financial and operational transition, seeking to sell its Berea facility to distribution partner Mastronardi for about $3.75 million.
Equilibrium, AppHarvest’s largest creditor, is also set to loan $30 million in Debtor-in-Possession financing to sustain the AppHarvest greenhouses in Morehead, Richmond, and Somerset. Both of these plans await approval of the Bankruptcy Court.
AppHarvest officials said the company, which focuses on growing sustainable food through indoor farms, is working to restructure its operations during the transition. Farming and shipping of produce is set to continue at all four facilities.