AeroFarms, a company producing leafy greens using an aeroponic vertical growing system, has filed for voluntary protection under Chapter 11 of the US Bankruptcy Code. Along with the petition, the company has also submitted several first-day motions to the bankruptcy court, seeking customary relief that will facilitate a smooth transition into Chapter 11 while minimizing disruptions to its ongoing core business operations.

The company has reached an agreement with a group of AeroFarms investors to provide USD 10 million in debtor-in-possession (DIP) financing. However, approval for this financing is subject to the first-day motions submitted to the bankruptcy court. Once approval is obtained, the DIP financing, combined with the cash generated from ongoing operations, is expected to provide AeroFarms with the necessary liquidity to support its operations during the bankruptcy proceedings.

Furthermore, the company's co-founder and CEO, David Rosenberg, has decided to step down from his position as CEO and will continue to contribute as a special advisor to the board. In the meantime, the chief financial officer (CFO), Guy Blanchard, will also be serving as the president of AeroFarms.