AppHarvest faces another foreclosure as creditor demands $47 million loan repayment

At the same time the company is facing eviction from its Berea, KY, greenhouse and shaking up its executive leadership, indoor grower AppHarvest has had another creditor demand repayment and threaten foreclosure, this time for its flagship Morehead, KY farm.  

The creditor is Rabo AgriFinance LLC, which signed a $75 million credit facility with AppHarvest in 2021. According to an SEC filing, Rabo alleges AppHarvest defaulted on its credit agreement as of July 3.

AppHarvest said in the filling it is working with Rabo “to come to a resolution, and will pursue a defense to any enforcement action taken by Rabo,” but that it “cannot guarantee a resolution on a timely basis, on favorable terms, or at all.”

According to a Louisville Business Journal article, Rabo’s demand is an automatically-triggered consequence of allegations of default from other lenders, which AppHarvest is contesting.

Travis Parman, Chief Communications Officer for AppHarvest said in a statement:

“AppHarvest is diligently working to restructure the company in an effort to make it profitable and to preserve value and jobs. The company has seen significant increases in production volume and quality under the leadership of Tony Martin who recently was named CEO.  

AppHarvest is working closely with multiple partners to secure financing and in the meantime is continuing business as usual—including shipping product from each of the four farms.”

AppHarvest operates farms in Morehead, Richmond, Somerset, and Berea, KY, growing cucumbers, strawberries, lettuce, and tomatoes.