AeroFarms gets approval of bid procedures, further access to DIP loan

By Sarah Lizee

Olympia, Wash., July 21 – AeroFarms, Inc. received approval of the bid procedures for its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company also received approval to designate AF NewCo, Inc., a newly formed entity owned by a group of existing investors including Grosvenor Food & AgTech, Ingka Investments Ventures US BV, Cibus Fund and ACEG GmbH, as stalking horse bidder for the assets.

Under the stalking horse bid, AF NewCo will acquire the purchased assets by a credit bid of all debtor-in-possession facility debt outstanding as of the closing date, plus $500,000 in cash and assumed liabilities, including amounts under a venture loan facility.

AF NewCo is providing a $10 million DIP secured term loan facility to the company.

Under the bid procedures, bids are due by 5 p.m. ET on Aug. 16, an auction is scheduled for Aug. 17 and a sale hearing will take place on Aug. 23.

Further DIP access

Also on Thursday, the company gained further access to the DIP financing.

Through two previous orders, the company had gained access to $7 million of the facility. The company now has access to the remaining $3 million.

Interest is 12% per annum. There is a 2% closing fee, a 2% unused commitment fee and a 3% exit fee.

The facility is set to mature on Dec. 31, subject to earlier maturity following certain events.

The indoor vertical farming company is based in Newark, N.J. The company filed bankruptcy on June 8 under Chapter 11 case number 23-10737.

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