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Bankruptcy Trustee Appointed For Barrel Stop Winery, Bank Opposes Sale

Barrel Stop/Dominari Winery has had a trustee appointed to oversee its insolvency.

In addition, its largest senior secured creditor, Mechanics bank, has opposed the winery’s proposed sale, relying on essentially the same information reported by Wine Industry Insight on March 28 (Barrel Stop Gets Offer, Buyer Background Raises Viability Doubts)

TRUSTEE APPOINTED

Alan Jaroslovsky U.S. Bankruptcy Court Judge for the Eastern District of California, signed the trustee order April 10 and directs that “Every dime of revenue” from Barrel Stop is to be deposited in a Debtor-In-Possession account with JPMorgan Chase.

According to the Court docket, “[N]othing is to leave the account without an order from Judge Jaroslovsky or written consent of the bank.”

SENIOR LENDER OPPOSES SALE

In addition, Mechanics Bank has opposed the potential sale of the winery, relying on the same information and factors cited by Wine Industry Insight in its premium subscriber newsletter, Wine Executive News.

According to the bank’s court filing:

“The bank finds itself in the unusual position of having to oppose a sale of the estate’s assets that proposes to pay it, and all other secured creditors, in full.

“Normally, the bank would not oppose such a sale, however, there are numerous unresolved issues that indicate this proposed sale is nothing but a financial pipedream, which, if approved by this court, essentially locks up the all the assets of the estate for what could be a purchase option for an unlimited period of time ….”

The Mechanics Bank Opposition To Sale court filing is available for subscribers of Wine Executive News

Previous Wine Industry Insight Coverage Of Barrel Stop

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