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Kentucky Ag News Headlines |
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AppHarvest Farm in Richmond, KY Faces Imminent Foreclosure
Kentucky Ag Connection - 06/07/2023
AppHarvest, a Kentucky-based indoor farming startup, is facing foreclosure proceedings for its 60-acre farm in Richmond. The company, known for its high-tech greenhouses, is accused of breaching its obligations to the lender, Equilibrium Capital, by failing to complete the Richmond facility on time and on budget.
Equilibrium Capital has filed a lawsuit alleging these breaches and citing a mechanics lien filed by the general construction contractor, Dalsem Greenhouse Technology B.V., for unpaid dues amounting to $14.5 million.
AppHarvest owes Equilibrium $66 million plus interest and costs. After failing to meet the lender's demand for a $15 million cash collateral account, Equilibrium has chosen to demand immediate payment. The lawsuit seeks to auction off the massive Richmond greenhouse to settle AppHarvest's debt.
AppHarvest, however, maintains that it is in full compliance with the loan terms and is working to resolve the issue with Equilibrium, considering it a misunderstanding of the facts. The loan on the Richmond facility represents a significant portion of AppHarvest's $182 million debt.
The startup, which envisions itself as part of a climate-resilient food system, has experienced falling sales, construction delays, and operational challenges. With the need to raise additional capital in the next four months to sustain operations, AppHarvest's financial future remains uncertain.
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