Win­ery owes $2 mil­lion – now on the mar­ket

Central Otago Mirror - - CENTRAL NEWS - By CHE BAKER

A Ban­nock­burn win­ery has gone into re­ceiver­ship ow­ing more than $2 mil­lion to cred­i­tors, but re­ceivers hope to pre­serve the brand and sell up ‘‘lock, stock and bar­rel’’. Desert Heart Wine Com­pany, es­tab­lished in 2000, was placed in re­ceiver­ship by Kevin Pit­field and Gareth Hoole in July af­ter it failed to re­pay a loan. The com­pany has five di­rec­tors and was be­lieved to owe $281,000 to a ‘‘gen­eral se­cu­rity agree­ment’’ holder as well as $1.9 mil­lion to un­se­cured cred­i­tors. A re­ceivers’ re­port said about 5000 cases of wine were held by Cromwell firm Vinpro with an es­ti­mated book value of $1.2m. A sig­nif­i­cant pro­por­tion of an ac­counts re­ceiv­able ledger with a bal­ance of $440,925 was in ar­rears when re­ceivers were ap­pointed, the re­port said. Fixed as­sets in­cluded $255,000 in win­ery equip­ment and mo­tor ve­hi­cles. The re­ceivers would continue to trade the com­pany in or­der to ‘‘max­imise the po­ten­tial for re­pay­ments to cred­i­tors’’ and to pre­serve the Desert Heart brand. How­ever, they would re-eval­u­ate the po­si­tion if trad­ing con­di­tions de­te­ri­o­rated and it was not eco­nom­i­cally vi­able to continue to op­er­ate. They are seek­ing po­ten­tial buy­ers of the wine with a pref­er­ence to­ward a ‘‘lock, stock and bar­rel’’ sale at a ‘‘fair and rea­son­able’’ mar­ket price.

Photo: EMMADAWE

Dry times: Desert Heart Wine Com­pany.

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