Plenty Unlimited Inc. and six other Plenty-affiliated debtors announced on Sunday that it had voluntarily filed for Chapter 11 bankruptcy protection in the Southern District of Texas, where it named more than $100 million in both liabilities and assets, as well as more than 200 creditors.
The Laramie, Wyoming-based a vertical farming company says it is filing for Chapter 11 to restructure its liabilities to streamline its future operations and initiatives.
“Our company is not immune from larger market dynamics and the fundraising challenges facing our industry. After evaluating all of our strategic alternatives, we have determined that pursuing this restructuring process is in the best interests of all of the company’s stakeholders,” Dan Malech, Plenty’s Interim CEO, said in a recent news release.
Plenty has selected Sidley Austin as the company’s legal advisor, led by Houston veteran restructuring partner Duston McFaul. The farming company has chosen Jefferies Group and Uzzi & Lall as financial advisors.
Plenty has secured $20.7 million in debtor-in-possession financing from One Madison Group and Softbank affiliates to help it maintain its business operations throughout the bankruptcy process.
If approved, the $20.7 million will also allow Plenty to continue operating its Richmond, Virginia-based vertical strawberry farm and its Laramie R&D facility as the company navigates Chapter 11.
Court documents also show that the lenders had previously provided Plenty with an $8.6 million bridge loan in preparation for restructuring to keep Plenty from ceasing operations.
According to filings, the law firms representing Plenty are Sidley Austin and Wilson Sonsini. Leading the Sidley team is Duston McFaul (Houston), with proposed co-counsel of Anthony Grossi (New York/Washington, D.C.), Ameneh Bordi (Washington, D.C.) and Weiru Fang (Washington, D.C.). The Wilmington, Delaware-based Wilson team includes Erin Fay, Shane Reil and Heather Lambert.
Davis Polk & Wardwell and Sullivan & Cromwell are representing some of the DIP financing providers in the deal.
Jefferies and Uzzi & Lall are serving as financial advisors on the restructuring. Jefferies’ New York team includes Richard Morgner and Philip Engel, while Jonathan Wang and Colin Adams are on the New York team for Uzzi.
The top creditors with unsecured claims are Maryland-based Whiting-Turner Contracting ($19.9 million), Virginia-based Electrical Controls & Maintenance ($7.7 million) and Ohio-based OCS IntelliTrak ($5.6 million).
The case, In re Plenty Unlimited Texas LLC et al, has been assigned to Houston Bankruptcy Judge Christopher M. Lopez. The case number is SDTX 25-90105.