VeroBlue Farms USA files plan based on $29.9 million capital infusion

By Caroline Salls

Pittsburgh, Dec. 11 – VeroBlue Farms USA, Inc. filed its plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the Northern District of Iowa.

According to the disclosure statement, the plan provides for a substantial, new capital infusion to revamp the company’s business as a going concern and to restructure its capital.

Specifically, the plan calls for a $29.93 million new capital infusion from Alder Aqua, Ltd., which would become the only remaining shareholder of VeroBlue when the plan takes effect.

Under the plan, holders of secured claims would retain their liens on and security interests in the collateral and be paid in full over time.

Holders of general unsecured claims would be paid 10% of their allowed claims in cash on the plan effective date.

All interests, other than those to be held by Alder Aqua, would be extinguished.

VeroBlue Farms is based in Webster City, Iowa. It filed for bankruptcy on Sept. 21 under Chapter 11 case number 18-01297.

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