Prima Wawona’s Chapter 11 plan effective as of April 15

By Sarah Lizee

Olympia, Wash., April 16 – MVK FarmCo LLC, which does business as Prima Wawona, had its Chapter 11 plan of liquidation go into effect on Monday, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 29, as previously reported.

Counsel for the company said at the confirmation hearing that the plan was amended to include several settlements, including with the official committee of unsecured creditors and lenders.

Under the plan, other secured claims and other priority claims will be paid in full.

Holders of class 3 bridge new money term loan claims will receive their pro rata share of pre-effective date sale proceeds left after satisfying in full any secured claims with liens senior to the liens of the bridge new money term loan claims on the proceeds. Holders will also receive their pro rata share of exit bridge facility term loans in a total amount equal to all bridge new money term loan claims outstanding as of the effective date.

Holders of class 4 bridge OpCo rollup term loan claims will receive their pro rata share of bridge OpCo rollup term loan claim distributions up to the amount of their claims. And, so long as a lender support agreement remains in effect and class 4 and class 6 vote to accept the plan, holders will also receive their pro rata share of proceeds of a promissory note.

Holders of class 5 PropCo secured claims will receive their pro rata share of pre-effective date sale proceeding left after satisfying in full secured claims with liens senior to the liens of the PropCo secured claims on the proceeds. Holders will also receive a pro rata share of an equitization consideration.

Holders of class 6 OpCo secured claims will receive their pro rata share of an OpCo secured claim distribution, up to the allowed amount of their claims. So long as the lender support agreement remains in effect and class 4 and class 6 vote to accept the plan, holders will also receive their pro rata share of proceeds of a promissory note.

Holders of general unsecured claims will receive their pro rata share of GUC trust beneficial interests for up to the full amount of their claims.

Holders of prepetition credit agreement deficiency claims will receive their pro rata share of a distribution.

Holders of intercompany claims will have their claims canceled with no distribution.

Intercompany interests will be reinstated, distributed, contributed, set off, settled, canceled and released or otherwise addressed.

Existing equity interests will be canceled with no distribution.

Holders of section 510(b) claims will not receive any distribution.

Prima Wawona is a Fresno, Calif.-based producer of stone fruit. The company filed bankruptcy on Oct. 13, 2023 under Chapter 11 case number 23-11721.

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