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AeroFarms seeks supplemental $10 million DIP loan
By Sarah Lizee
Olympia, Wash., July 27 – AeroFarms, Inc. is seeking approval of a supplemental $10 million tranche B debtor-in-possession loan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, the company has already received court approval of a $10 million tranche A DIP facility via 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. The entity is acting as stalking horse bidder for the company’s assets.
The parties agreed to provide supplemental financing to provide necessary liquidity through the projected closing date of the sale in late August.
Interest on both tranches is 12% per annum. There is a 2% closing fee, a 2% unused commitment fee and a 3% exit fee.
The DIP financing 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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