July 28, 2023

AppHarvest files for bankruptcy | News

Kentucky-based agricultural technology company AppHarvest filed for bankruptcy amid doubts about the business’ future.

The company, which has built some of the world’s largest indoor farms, announced plans Monday morning for “a financial and operational transition” that includes filing for bankruptcy. Recent media reports have highlighted turmoil associated with the company, such as a lease termination and facility foreclosures.

An attorney for AppHarvest filed documents late Sunday night in the Southern District of Texas U.S. Bankruptcy Court. The case is assigned to Judge David R. Jones.

A company press release said AppHarvest’s course correction plan revolves around the bankruptcy filing. Additionally, the company has a commitment from creditor Equilibrium for $30 million of debtor-in-possession financing to support its operations in Morehead, Richmond and Somerset. The financing is subject to the court’s approval.

Earlier in July, the Lexington Herald-Leader reported that the property owner of AppHarvest’s Berea facility wanted to terminate the company’s lease. As part of its plan, AppHarvest wants to transfer its Berea operations to distribution partner Mastronardi Produce or an affiliate at the cost of $3.75 million, along with additional support. This, too, is subject to court approval.

AppHarvest’s stock price was $0.33 at the close of business

Read the rest