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AeroFarms’ Chapter 11 plan of liquidation plan effective as of Nov. 9
By Sarah Lizee
Olympia, Wash., Nov. 10 – AeroFarms, Inc.’s Chapter 11 plan of liquidation went into effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.
The plan, which was confirmed Oct. 25, was proposed by the company and the official committee of unsecured creditors.
As previously reported, AeroFarms gained approval to sell its assets to stalking horse bidder 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.
Under the stalking horse bid, AF NewCo acquired the assets by a credit bid of all debt under a $10 million debtor-in-possession facility, plus $500,000 in cash and assumed liabilities, including amounts under a venture loan facility.
Under the plan, a liquidation trust will fund distributions with cash held on the effective date by or for the benefit of the debtors.
Holders of prepetition secured claims, tranche A DIP claims, tranche B DIP claims and NMTC parties secured claims will receive full recovery.
Other secured claims and other priority claims will be unimpaired.
Holders of DVC noteholder claims, 2022 noteholder claims and general unsecured claims will receive cash in an amount of their pro rata share among all holders of general unsecured claims of a distribution fund. If a holder in any of these classes votes to accept the plan, they will be deemed a released party.
Holders of intercompany claims, intercompany interests and interests in AeroFarms will receive no distribution.
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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