Brewster Heights Packing & Orchards, LP Bankruptcy Case

The case is now on a section 363 sale track, with the debtors seeking approval to designate Heritage Orchard Alliance LLC as stalking horse for substantially all assets under a proposed $231.3 million transaction. Brewster Heights and 12 affiliates filed Chapter 11 on June 4, 2026, to preserve their vertically integrated orchard, packing and distribution business while pursuing a court-supervised sale; the debtors said immediate liquidity was needed to fund harvest operations, protect perishable inventory and avoid a shutdown or liquidation in the First Day DeclarationDkt. 10.

At the outset, the debtors sought a priming, superpriority facility from Sandton Capital Solutions Master Fund VI, LP, together with cash-collateral authority, to fund operations and restructuring costs through the sale process. The proposed financing package contemplated first-priority liens on substantially all assets, subject to specified senior liens, and imposed weekly reporting, a 20% aggregate disbursement-variance covenant and case milestones tied to bid procedures, an auction, sale approval and closing. The DIP and Cash Collateral MotionDkt. 29 also identified substantial prepetition secured obligations to Prudential and BMO, underscoring the secured-creditor framework within which the sale is proceeding.

The sale proposal follows a marketing process that began in June 2025 and reached more than 80 potential counterparties. The current transaction would provide $231.3 million of cash and assumed debt, including cash repayment of the DIP obligations up to $50 million and assumption of specified Prudential debt. It remains subject to higher or otherwise better bids and court approval: the sets an August 19 bid deadline, an August 24 auction and a September 30 outside closing date. The immediate milestone is a July 23 hearing on the stalking-horse designation and bid protections, with responses due July 21, as set out in the .

The court approved procedures for a sale of substantially all of Brewster Heights’ assets, overruling with prejudice any bid-procedures objections that had not been withdrawn, waived, or settled. The Bid Procedures Order permits the debtors to designate a stalking-horse bidder by July 15, subject to a July 23 approval hearing, while leaving any breakup fee or expense reimbursement subject to separate court approval.

The Auction and Sale Hearing Notice sets an August 19 at 4:00 p.m. PT bid deadline and an August 24 at 10:00 a.m. PT auction. Final sale objections and assigned-contract objections are due August 28 at 11:59 p.m. PT, followed by a September 1 at 10:00 a.m. PT sale hearing. These dates put the estate on a defined path to monetize its operating assets alongside the recently approved $50 million DIP; bidders now have roughly six weeks to diligence and finance competing offers, while creditors must preserve sale and cure objections before the late-August cutoff.

Brewster Heights Packing & Orchards, LP

Brewster Heights Packing & Orchards, LP

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Court approves sale process for substantially all assets

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