{"id":23443,"date":"2026-06-12T21:50:51","date_gmt":"2026-06-12T21:50:51","guid":{"rendered":"https:\/\/globalnewstoday.uk\/index.php\/2026\/06\/12\/anderson-hay-seeks-additional-financing-to-fund-harvest-operations-capital-press\/"},"modified":"2026-06-12T21:50:51","modified_gmt":"2026-06-12T21:50:51","slug":"anderson-hay-seeks-additional-financing-to-fund-harvest-operations-capital-press","status":"publish","type":"post","link":"https:\/\/globalnewstoday.uk\/index.php\/2026\/06\/12\/anderson-hay-seeks-additional-financing-to-fund-harvest-operations-capital-press\/","title":{"rendered":"Anderson Hay seeks additional financing to fund harvest operations – Capital Press"},"content":{"rendered":"

Published 2:20 pm Friday, June 12, 2026
By Mateusz Perkowski<\/a><\/strong>
To fund its forage harvest season operations, Anderson Hay is seeking approval for a $5 million “debtor in possession” loan during the company’s bankruptcy reorganization.
Anderson Hay has asked a bankruptcy judge for “emergency” authorization of the “debtor in possession” financing, which is necessary for the forage exporter to fund its operations, at a bankruptcy court hearing scheduled for June 17.
Up until now, the company has been able to pay for its operations with cash that serves as collateral for its debts, said Steve Gordon, Anderson Hay’s chief financial officer, in a court filing.
“However, the Debtors’ business is seasonal and at times capital-intensive, and the Debtors now require additional liquidity for the 2026 harvest season that has recently begun that cannot be satisfied through cash collateral alone,” he said. “The purchase of raw hay and related operating costs for the 2026 season must be funded now, during the summer harvest window, to ensure the Debtors have sufficient inventory to fulfill customer orders and generate revenue through the remainder of the year.”
Apart from funding operations during this year’s harvest, the $5 million financing deal from Conterra Agricultural Capital will allow Anderson Hay to pay off about $1.4 million in grower claims for past forage deliveries, Gordon said.
The company has already spent about $3.3 million to satisfy farmer claims from before its Chapter 11 bankruptcy filing, which helps “ensure a reliable and predictable delivery of raw materials,” he said.
Debtor in possession financing generally allows companies in Chapter 11 proceedings — during which their assets are shielded from foreclosure while restructuring — to take on more debt with a higher priority for repayment to the lender.
Anderson Hay must obtain such financing because an existing line of credit that it had used for harvest operations in prior years was terminated by AgWest Farm Credit, one of its major creditors, before the bankruptcy filing last year, according to the company’s motion.
Under the deal proposed in bankruptcy court, Conterra would be able to take a “first-priority” lien position on certain assets that serve as collateral for loans, ahead of PGIM Real Estate Finance, another major creditor.
With other assets, AgWest and PGIM would retain their top priority for repayment while Conterra would take a subordinate position. The total amount of collateral for the debtor in possession financing would top $63.5 million in assets.
The deal represents a “reasonable exercise of the Debtors’ business judgement” and satisfies bankruptcy requirements because PGIM would still be protected by a “substantial equity cushion” of collateral that exceeds the $15 million owed to the company, according to Anderson Hay.
Also, the financing agreement will allow Anderson Hay to operate during harvest and improve PGIM’s “prospects for full recovery” of the money it’s owed, the company said.
“Without the DIP Facility, the Debtors will be unable to operate during the harvest season, which would cause an immediate and material deterioration in the value of the going-concern enterprise and the collateral securing PGIM’s loans,” according to Gordon.
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Published 2:20 pm Friday, June 12, 2026 By Mateusz Perkowski To fund its forage harvest season operations, Anderson Hay is seeking approval for a $5 million “debtor in possession” loan during the company’s bankruptcy reorganization.Anderson Hay has asked a bankruptcy judge for “emergency” authorization of the “debtor in possession” financing, which is necessary for the […]<\/p>\n","protected":false},"author":1,"featured_media":23444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-23443","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"_links":{"self":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts\/23443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/comments?post=23443"}],"version-history":[{"count":0,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts\/23443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/media\/23444"}],"wp:attachment":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/media?parent=23443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/categories?post=23443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/tags?post=23443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}