AeroFarms receives court approval to sell assets to investor entity

By Sarah Lizee

Olympia, Wash., Aug. 24 – AeroFarms, Inc. 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, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it did not receive any other qualified bids by the deadline, as previously reported.

Under the stalking horse bid, AF NewCo will acquire the purchased assets by a credit bid of all debtor-in-possession facility debt outstanding as of the closing date, plus $500,000 in cash and assumed liabilities, including amounts under a venture loan facility.

AF NewCo is providing a $10 million DIP secured term loan facility to the company.

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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