A Sidley restructuring team initiated Chapter 11 proceedings for AppHarvest, Inc. in the U.S. Bankruptcy Court for the Southern District of Texas. AppHarvest is a high-tech indoor farming company with over US$300 million in funded debt and lease obligations. All requested interim relief was consensually approved at the company’s first day hearing on Tuesday, July 25, including a 9019 transfer motion and a US$29.6 million DIP financing motion. The company’s plan, supported by an RSA with its largest secured creditor (Equilibrium Capital), contemplates an approximately 60 day sale process under section 363 of the Bankruptcy Code, to facilitate the transition of AppHarvest’s existing operations to Equilibrium, the company’s proposed stalking horse purchaser.
The team representing AppHarvest includes Restructuring partners Steve Hessler and Anthony Grossi (New York), Private equity partner Chris Abbinante (Chicago), and M&A partner Ryan Scofield (Dallas). The team also includes Duston McFaul (partner, Restructuring), Jeri Leigh Miller (senior managing associate, Restructuring), Patrick Venter (senior managing associate, Restructuring), Maggie Alden (managing associate, Restructuring), Andres Barajas (managing associate, Restructuring), Weiru Fang (managing associate, Restructuring), Ian Ferrell (associate, Restructuring), Ryan Fink (associate, Restructuring), and Chelsea McManus (associate, Restructuring).