AeroFarms, a company producing leafy greens using an aeroponic vertical growing system, has provided the following updates on the company's operations and its Chapter 11 bankruptcy .

AeroFarms has filed for a court approval on July 11, 2023, to enter an asset purchase agreement (APA) and designate a Stalking Horse bidder. The company seeks to conduct an auction to sell assets under Section 363 of the Bankruptcy Code while continuing normal operations. The company hopes to obtain a court order confirming the results of the 363 sale on or before August 22, 2023, subject to the court's calendar.

On July 10, 2023, the company signed an APA with AF NewCo, a newly formed entity owned by existing investors, including Grosvenor Food & AgTech, INGKA Investments Ventures US BV, Cibus Fund, and ACEG Beteiligungsgesellschaft mbH. As per the APA, AF NewCo will serve as the Stalking Horse Bidder to acquire the company assets. AF NewCo has also provided a Debtor-In-Possession (DIP) loan of USD 10 million and, as per the terms of the APA, will credit bid its DIP, assuming significant operating liabilities and financing the wind-down of the Chapter 11 proceedings.

The company also received court approval to continue paying employees, vendors, and other entities in the ordinary course of business and will use the funding provided by the DIP loan for this purpose.