Prima Wawona gets no qualified bids, will go forward with lender deal

By Sarah Lizee

Olympia, Wash., Dec. 8 – MVK FarmCo LLC, which does business as Prima Wawona, gave an update on its sale process in a notice filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

By the bid deadline, the debtors had received multiple bids, both for substantially all of their assets and for subsets of their assets. Among the bids received was a $275 million credit bid submitted by a steering committee of prepetition agents and lenders.

The company said the other bids received for substantially all of the assets did not satisfy the minimum bid requirement, which wasn’t waived by the applicable prepetition lenders, and bids received for subsets of the assets did not meet associated asset minimum purchase prices determined by the debtors.

As such, none of the bids were otherwise deemed a qualified bid under the bidding procedures.

The debtors elected to cancel the auction, which had been adjourned to Dec. 8, and intend to pursue a transaction with the lender group.

The steering committee is committed to allowing the debtors’ continued use of cash collateral, Prima Wawona said.

The debtors are currently negotiating a revised budget with the lender group to determine if incremental financing is necessary.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.