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AppHarvest gets access to DIP package; lender to act as stalking horse
By Sarah Lizee
Olympia, Wash., July 27 – AppHarvest, Inc. has received interim approval of a $30 million debtor-in-possession facility via Equilibrium, the company’s largest secured creditor, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.
The DIP financing consists of $24.3 million in new money, with the remaining being a rollup of prepetition debt.
Following the interim order, the company has access to $8 million of the financing.
Interest is 12% per annum, payable in kind. The default rate is 3% higher.
The DIP financing has a 75-day term.
The company said that absent entry into the DIP facility, the debtors would not have sufficient liquidity to continue operating in the ordinary course and would be forced to shut down each of their three greenhouse facilities, which would be value destructive, particularly in light of the perishable nature of the debtors’ goods and inventory.
Stalking horse deal
Equilibrium has also been named stalking horse bidder for the two of the company’s three greenhouse facilities.
In bid procedures filed Wednesday, the company proposed a bid deadline of 5 p.m. ET on Aug. 21, an auction on Aug. 24, and a sale hearing on Aug. 31.
The assets are split into three parts: the first part includes the Richmond/Morehead assets, the second part includes the Somerset assets, and the third part includes other assets.
Equilibrium put in a bid for the Richmond/Morehead assets. The bid consists of a credit bid of prepetition debt, which is equal to about $113.18 million.
The sustainable food company is based in Morehead, Ky. The Chapter 11 case number is 23-90745.
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