Prima Wawona reaches settlement with unsecured creditors committee

By Sarah Lizee

Olympia, Wash., Jan. 29 – MVK FarmCo LLC (Prima Wawona) is seeking approval of a settlement with the official committee of unsecured creditors, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

If approved, on the settlement effective date, sponsor Paine Schwartz Partners, LLC and Wawona Delaware Holdings, LLC will be obligated to contribute cash in the amount of $2.2 million payable to the general unsecured creditor trust on the effective date of the company’s Chapter 11 plan.

A liquidating trust will be established on the plan effective date to hold and distribute the GUC trust assets and otherwise administer general unsecured claims.

Assets transferred to the GUC trust on the plan effective date will include the sponsor settlement amount and any and all estate claims and causes of action against former chief executive officer Dan Gerawan and any entity that is his affiliate, including Negocios Libertad LLC.

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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