Do Good Foods files bankruptcy with debt topping $100 million

By Sarah Lizee

Olympia, Wash., June 16 – KDC Agribusiness LLC, which does business as Do Good Foods, filed Chapter 11 bankruptcy on Friday in the U.S. Bankruptcy Court for the District of Delaware, according to court documents.

As part of the process, the company received a commitment for roughly $30 million in new financing under a debtor-in-possession facility to support its business. Details of the financing were not immediately available at the time of filing.

The company may be submitting a motion that seeks approval of bid procedures for a potential sale, according to the petition.

Do Good Foods said it is continuing to execute contracts and expansion plans and operate as normal.

In its petition, the company listed 200 to 999 creditors, $100 million to $500 million in assets and $100 million to $500 million in debt.

Its largest unsecured creditor is California Safe Soil, based in McClellan, Calif., with a litigation claim, though the amount of the claim was not disclosed.

Next up are Foley & Lardner, based in Washington, D.C., with a $5.34 million professional services claim, Torcon Inc., based in Red Bank, N.J., with a $3.2 million trade debt claim, Piper Sandler, based in Denver, with a $2.06 million professional services claim, and Amentum Commercial Operations, Inc., based in Germantown, Md., with a $1.92 million trade debt claim.

Richards, Layton & Finger, PA is representing the company.

KDC Agribusiness is a food waste recycling company based in Bedminster, N.J. The Chapter 11 case number is 23-10786.

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