A federal judge approved AppHarvest’s bankruptcy plan, allowing the company to move forward with liquidating its assets.
The Kentucky-based company’s bankruptcy case could’ve easily ended up in a “much darker place,” said Judge David Jones of the federal bankruptcy court for the Southern District of Texas. Jones approved AppHarvest’s plan less than two months after the indoor produce grower filed for bankruptcy. “I have seen a very interesting mix in this case of negotiation, as well as collaboration, and they don’t go hand in hand, always,” Jones told the court.
The confirmation came a week after Jones signed off on plans to sell AppHarvest’s last three greenhouses. Equilibrium, an Oregon-based investment firm, purchased the two largest greenhouses in Richmond and Morehead. Bosch Growers, a Netherlands-based indoor produce grower, bought the greenhouse in Somerset.
As part of the negotiated plan, AppHarvest will use the money generated by the selling of its assets to pay back a portion of the company’s creditors for outstanding debts. When the case was filed, unsecured creditors were expected to recover nothing, but through negotiations, they could potentially recover up to 40% of their claims, Jeri Leigh Miller, an attorney representing AppHarvest, told the court. The plan will be executed by the end of the month.
Read more at yahoo.com
