Prima Wawona receives court approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Dec. 29 – MVK FarmCo LLC, which does business as Prima Wawona, received approval of the disclosure statement for its Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Feb. 8.

As previously reported, in connection with an agreement reached among the company’s lenders, Prima Wawona is proceeding with a transaction that will involve either the conversion of existing lender debt into equity ownership of the business or allow for a sale transaction to a third-party buyer.

The opening bid for the company’s collective assets has been set at $275 million.

The equitization restructuring under the plan would include the full or partial equitization of bridge OpCo roll-up term loan claims, PropCo secured claims and OpCo secured claims, among other consideration to be provided to these creditors.

A winddown under the plan would result in a waterfall distribution of the net cash proceeds.

Other secured claims and other priority claims will be paid in full.

If one or more third-party sales occur, general unsecured creditors will receive a pro rata share of the excess sale proceeds if the amount of excess sale proceeds is more than zero, and nothing otherwise. If a credit bid sale or equitization restructuring occurs, holders will not receive a distribution.

Intercompany claims will be canceled with no distribution.

Intercompany interests will be reinstated, distributed, contributed, set off, settled, canceled and released, or otherwise addressed.

Existing equity interests and section 510(b) claims will be canceled with no distribution.

Prima Wawona is a Fresno, Calif.-based producer of stone fruit. The company filed bankruptcy on Oct. 13 under Chapter 11 case number 23-11721.

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