Prima Wawona receives further interim access to $43 million DIP loan

By Sarah Lizee

Olympia, Wash., March 15 – MVK FarmCo LLC (Prima Wawona) received further interim approval to access a $43 million debtor-in-possession multi-draw facility, according to a fourth interim order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The loan has been amended to increase the amount from $22 million.

The financing is being provided by prepetition lenders Metropolitan Life Insurance Co., Compeer Financial, PCA and AgCountry Farm Credit Services, PCA, among other lenders.

The DIP facility is structured such that if a Chapter 11 plan is consummated prior to March 31, then all outstanding DIP loans will be rolled up into an exit facility and not paid in cash.

Interest on the DIP facility is SOFR plus 1,000 basis points. There is a 0% SOFR floor.

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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