AF Liquidation is in post-confirmation liquidation, with Dundon Advisers serving as Liquidation Trustee and the estate now focused on claims reconciliation and limited remaining distributions rather than an operating turnaround. The case began when AeroFarms filed chapter 11 on June 8, 2023 after persistent capital constraints, an unsuccessful 2021 de-SPAC transaction, a late-2022 preferred equity raise that did not solve liquidity needs, and only $3.6 million of unrestricted cash at the petition date; the first-day declaration described a capital-intensive vertical farming platform with a transition of commercial production toward Danville and approximately $68.5 million of funded debt across the Horizon venture loan, DVC notes, 2022 convertible notes, and the BIRD loan in the Blanchard first-day declarationDkt. 14.
The restructuring path moved quickly from liquidity preservation toward a plan process. The debtor entered chapter 11 with a proposed $10 million DIP facility, including $5 million available on an interim basis, supplied by existing noteholders and board-affiliated investors, while seeking first-day operating relief for wages, cash management, utilities, critical vendors, and case administration through the Blanchard first-day declarationDkt. 14. By October 25, 2023, the court had confirmed the Debtors' Combined Disclosure Statement and Joint Chapter 11 Plan through the confirmation orderDkt. 401, shifting the case from rescue financing and plan negotiation into post-effective-date estate administration.
The current posture is a mature liquidation trust with modest cash activity and a larger-than-expected unsecured claims pool. In the post-confirmation report for the quarter ended March 31, 2026, the Liquidation Trustee reported $1,316 of quarterly disbursements, $3.15 million of cumulative disbursements since the November 9, 2023 effective date, and ongoing claims reconciliation; the same report indicates estimated general unsecured claims of about $78.1 million, including an added $68.4 million of identified GUCs, against only about $78,137 anticipated for GUC distributions in the post-confirmation reportDkt. 561. Administrative and priority claims are expected to be paid in full, while unsecured recoveries appear de minimis unless claims reconciliation or estate recoveries materially change the distribution base.