Prima Wawona’s cash collateral motion draws objection from committee

By Sarah Lizee

Olympia, Wash., Dec. 14 – MVK FarmCo LLC’s (Prima Wawona) motion for final approval to access cash collateral drew an objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The committee said that during the last several weeks it has taken part in negotiation sessions with the debtors and the prepetition secured parties to resolve the committee’s concerns about the cash collateral motion.

The committee said it filed the objection in case its concerns aren’t consensually resolved prior to the final hearing.

The group said the debtors need to propose a revised budget and a wind-down budget that together provide for payment in full of all allowed administrative expenses, including adequate funding for the committee to fulfill its fiduciary duties.

The committee said it also must be afforded a reasonable opportunity to investigate and prosecute challenges.

The group also said prepetition secured parties should not be granted liens on or super-priority claims payable from previously unencumbered property, including avoidance actions, estate causes of action, or any proceeds thereof.

The carve-out must be modified to ensure equitable treatment among estate professionals, the committee added.

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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