Former AeroFarms’ Chapter 11 plan draws U.S. trustee objection

By Sarah Lizee

Olympia, Wash., Oct. 19 – The Chapter 11 plan of AF Liquidation, Inc., formerly AeroFarms, Inc., drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said the plan contains non-consensual third-party releases that render it unconfirmable.

The plan extinguishes direct claims against non-debtor parties held by other non-debtor parties without their affirmative consent.

“Affirmative consent is required,” Vara said.

“The plan should not be confirmed absent modification of the third-party release provisions to ensure all third-party releases are consensual.”

The hearing on final confirmation of the plan and disclosure statement is scheduled for Oct. 24.

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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