A court approved $150 million in emergency credit for the Harvest Sherwood bankruptcy estate on July 8, 2026, with Atlas Grove Management funding the facility the same day. The money is a debtor-in-possession loan: credit extended to a company already under bankruptcy protection so it can keep paying bills while the case runs its course. Atlas Grove has also committed to a potential $180 million exit facility, targeted for August.
The stalking horse structure
Atlas Grove entered the Harvest Sherwood process as a stalking horse bidder. A stalking horse, in plain terms, is a pre-selected offer that sets the floor for any competitive auction that follows. Courts use this structure to ensure the estate receives at least one credible bid before the process opens to other parties. If a better offer emerges, the estate takes it. If none does, the stalking horse terms prevail.
The $150 million DIP is specifically a replacement facility. It retires an earlier credit line that was already funding Harvest Sherwood through the proceedings and replaces it with new capital at new terms. The fact that funding happened on the day of court approval matters: in an active bankruptcy, a gap between judicial sign-off and available cash can disrupt payments to suppliers and employees.
Signed versus projected
The two tranches carry different weight. The $150 million is approved and funded. The $180 million exit facility is projected for August and depends on how the case progresses. Exit financing is how a company formally leaves bankruptcy: it retires the temporary DIP debt and gives the reorganized entity a conventional capital structure. Until that facility closes and the court discharges the proceedings, Harvest Sherwood remains a bankruptcy estate. August is the target, not a signed closing date.