Plenty Unlimited Inc., an agtech company with an indoor vertical farming platform, has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.

The company said it initiated Chapter 11 proceedings in order to restructure its liabilities, streamline operations and focus its go-forward operations.

The company will continue to operate its Richmond, Virginia, vertical strawberry farm and Laramie, Wyoming, plant science research and development (R&D) facility throughout the restructuring process. The company has also received a commitment for debtor-in-possession (DIP) financing of $20.7 million. Plenty has filed a motion seeking approval of the DIP financing and, upon approval, the DIP financing is expected to provide Plenty with the necessary liquidity to support its operations throughout the planned process.

Dan Malech, Plenty’s interim CEO, noted that the 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,” he said.

In addition to seeking approval of the DIP financing, Plenty has filed a number of customary motions seeking authorization to support its operations during the court-supervised process, including authority to pay wages and provide health and other employee benefits.

More from New AG International on Vertical Farming:

UAE vertical farm Bustanica moves into e-commerce

The key to survival in vertical farming? Finding the right business model