Knudsen laid off workers in Northern California.

The financially ailing Los Angeles-based dairy laid off 15 of 25 workers at a powdered milk plant in Willows because it had lost much of its milk supply, said Steve Ruckle, secretary-treasurer of Teamsters Local 137. In a separate development, Knudsen’s lender, Citicorp Industrial Credit Bank, said it will lend the company enough money to operate its business through Aug. 3, subject to certain conditions. By Thursday evening, Knudsen hadn’t said whether it would meet those conditions, according to Ruby Uliana, manager of Cal-Dari, a milk cooperative that supplies Knudsen.