Prima Wawona gets further interim access to cash collateral

By Sarah Lizee

Olympia, Wash., Jan. 8 – MVK FarmCo LLC (Prima Wawona) has received further interim access to cash collateral, according to a fifth interim order filed Sunday with the U.S. Bankruptcy Court for the District of Delaware.

A further hearing is scheduled for Jan. 17.

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 lenders, which include Cooperatieve Rabobank UA, New York Branch and Royal Bank of Canada, consented to the cash collateral use.

The company’s motion for final approval to access the cash collateral has drawn an objection from the official committee of unsecured creditors, as previously reported. The group said it has been in negotiations with the parties, however.

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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