NEWARK, NJ - AeroFarms recently announced its filing for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code. This decision was made after careful consideration from its board. Alongside this filing, the company will be restructuring its C-suite. David Rosenberg, Co-Founder and Chief Executive Officer, will step down from his CEO role and will work as a special advisor to the board. Chief Financial Officer Guy Blanchard will assume the additional role of President of AeroFarms.
“We are fortunate to have existing investors who continue to believe in AeroFarms and are confident that we can hit our targeted profitable operations for our Danville farm,” said Guy Blanchard, President and Chief Financial Officer of AeroFarms, addressing the Virginia-based operation that continues to scale according to plan. “There is incredible consumer and customer interest for our market-leading microgreens, and we are excited to continue [to] be able to build our business to meet that demand.”
Blanchard will work closely with a Special Committee of the Board of Directors consisting of Jim Borel and Peter Lacy, both long-term AeroFarms independent Board Members, to help guide AeroFarms through the bankruptcy process. According to a press release, AeroFarms also filed various “first day” motions with the bankruptcy court requesting customary relief that will enable it to transition into Chapter 11, with limited disruptions to its ongoing core business operations.
AeroFarms has an agreement with an existing group of investors to provide $10 million in debtor-in-possession (“DIP”) financing, as part of a larger round of financing that includes those investors. The first day motions filed with the court include approval of the DIP financing. Once approved by the Bankruptcy Court, the DIP financing, together with cash generated from ongoing operations, is expected to provide AeroFarms with the necessary liquidity to support its operations during the bankruptcy process.
As outlined in a release, the focus of the investor group is to assure that AeroFarms will operate as usual throughout the Chapter 11 filing, servicing its growing customer base and key selling partners, including additional retailer expansions planned for the remainder of 2023.
To read more about this filing, click here.
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