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US agtech company AppHarvest has filed for Chapter 11 bankruptcy protection in pursuit of a "financial and operational transition" in order to reduce its outstanding liabilities. The company made various voluntary petitions for protection under Chapter 11 in the US Bankruptcy Court for the Southern District of Texas. As part of its Chapter 11 process, the AppHarvest secured a commitment from its largest secured creditor, Equilibrium, to provide approximately $30 million in debtor-in-possession (DIP) financing. The financial support is crucial in ensuring the necessary liquidity to support operations at AppHarvest Morehead, AppHarvest Richmond and AppHarvest Somerset farms in Kentucky, US, during this period. The DIP financing is subject to court approval. AppHarvest said that business operations will continue at the farms, including shipping product to top national grocery store chains, restaurants and foodservice outlets. In addition, AppHarvest is seeking to transition back its farm in Berea to its distribution partner, Mastronardi Produce, or one of its affiliates, for approximately $3.75 million. Mastronardi already owns the Berea farm, and, in a letter released earlier this month, the business told AppHarvest that the lease would be terminated. AppHarvest CEO Tony Martin said: “The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximise value for all stakeholders prior to the Chapter 11 filing. The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.”