Armory Group‘s restructuring advisory and food and agribusiness industry teams served as financial advisor and legal counsel to Equilibrium Capital through the restructuring of AppHarvest, a sustainable food company. Equilibrium was AppHarvest’s largest pre-bankruptcy petition secured creditor.

AppHarvest developed and operated a network of indoor farms comprising 165 acres of glass greenhouse facilities on four farms in Kentucky, producing tomatoes, salad greens, strawberries and cucumbers. The company had $341 million in debt when it filed for bankruptcy in July.

Through its Controlled Environment Foods Fund II, Equilibrium provided convertible construction financing to AppHarvest.

Armory’s services including advising on Equilibrium’s $30 million debtor-in-possession financing and monitoring the debtor’s DIP budget, the successful purchase and consolidation of AppHarvest’s secured bank debt, the successful stalking horse credit bid for two of the four AppHarvest farms and the lease of the acquired facilities to Mastronardi Produce as part of a broader restructuring plan.

AppHarvest received confirmation of its Chapter 11 plan in the U.S. Bankruptcy Court for the Southern District of Texas on Sept. 14.