MOREHEAD, Ky. (LEX 18) — AppHarvest announced they have filed for bankruptcy following several Chapter 11 filings in the federal bankruptcy court for the Southern District of Texas.
AppHarvest is an indoor agriculture Kentucky-based company.
The company's CEO Tony Martin released the following statement on the filings:
“The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximize value for all stakeholders prior to the Chapter 11 filing. The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.”
According to AppHarvest, they are pursuing a financial and operational transition to help the company lower its liabilities. In order to do so, the company filed for protection under the Chapter 11 of the U.S. Bankruptcy Code.
AppHarvest says they have also received a commitment from Equilibrium to provide around 30 million of debtor in possession financing.
The company is making efforts to maximize the value creditors can expect to preserve jobs at AppHarvest in Morehead, Richmond, and Somerset during the proceedings.
There is also a transition in Berea to their partner, Mastronardi Produce, in exchange for 3.75 million but is subject to court approval.
