AppHarvest gets notice of loan acceleration; cross-default triggered

Chicago, June 6 – AppHarvest Richmond Farm, LLC’s loan was called by Equilibrium Sustainable Foods, LLC after the lender alleged certain defaults relating to increases in a construction budget, delays in construction made without the lender’s approval, the existence of a mechanic’s lien, and alleged construction deficiencies.

CEFF, the actual lender and an affiliate of Equilibrium, asked for the immediate repayment of $66.7 million in principal and interest.

From the alleged events of default, the loan now bears interest at the 13% default rate.

Further, the default triggered a cross default with a master credit agreement with Rabo AgriFinance LLC, of which there was $69.4 million outstanding. Rabo has not exercised any of the remedies available to it under the credit agreement as of the Monday 8-K filing with the Securities and Exchange Commission.

The sustainable food company is based in Morehead, Ky.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.