Prima Wawona gets access to $17 million of DIP financing

By Sarah Lizee

Olympia, Wash., Feb. 16 – MVK FarmCo LLC (Prima Wawona) received approval to access $17 million of a $22 million debtor-in-possession multi-draw facility, according to a second interim order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The interim amount includes the $6 million the company gained access to after the first interim order.

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

As previously reported, the motion had drawn objections from prepetition lenders and agents Cooperatieve Rabobank UA, New York Branch and Royal Bank of Canada and the official committee of unsecured creditors.

Following discussions between the parties at the first DIP hearing, the issues raised in the objections were deferred so that an order could be entered.

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.

A final hearing on the DIP financing is scheduled for Feb. 28.

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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