While prospects for insolvency have captured the attention of those following the W. J. Deutsch's lawsuit against Ascentia Wine Estates (AWE), the process has unleashed a series of corporate mismanagement allegations against CEO Jim DeBonis.
"Eight Estates [a former name for AWE] may or may not be insolvent in a purely technical sense," said one source associated with the process. "But there is no denying that it has serious sales and financial problems, most of which result from executive mismanagement. That said, the company's only way out of its financial jam may be to file Chapter 11 in order to force debtors to restructure its debt."
That source, along with 17 others interviewed by Wine Industry Insight, spoke only upon a guarantee of confidentiality, some because they were not authorized to speak with the media and others fearful of "blowback."
"This is messy and going to get a lot messier before it's over," explained one source. "There will be collateral damage. People are going to get shot in the crossfire."
ALL SOURCES GIVEN OPPORTUNITY TO CORRECT & COMMENT
On Sunday evening, Wine Industry Insight emailed a draft of this article to DeBonis, Peter Deutsch and to all sources requesting corrections and additions by noon Monday. While not a standard WII practice, the shortcomings inherent in articles that rely heavily on unnamed sources demand an extra effort to insure a fair, accurate, complete and contextually accurate article.
Information from anonymous sources is never used by Wine Industry Insider unless it is corroborated by legitimate documents or by two or more independent sources.
Neither Deutsch nor anyone from his organization had any comment.
An email from DeBonis read, "Thanks for the opportunity, you definitely have your facts all wrong. I cannot get back to you by noon, but I will later on."
WIN had not received anything from DeBonis by 4:30 p.m. when this article was sent to subscribers,
In addition to its sources, Wine Industry Insight also relied upon W. J. Deutsch's legal complaint filed in Delaware Chancery Court.
DEUTSCH RAN OUT OF PATIENCE, FILED SUIT
"Bill Deutsch got tired of being ignored," said a source familiar with the controversy. "He felt stonewalled, lied to and believed that his legitimate concerns had been ignored. But you have to remember that he's also in litigation with another investment, Renwood Winery. I think he pulled the legal trigger so quickly on this one because he felt his patience with Renwood had been taken advantage of and he was not going to let that happen again."
"Even though WJD has a 27-percent interest, the rest is in the hands of Jim's allies, with GESD holding a whopping majority," said the source.
Ascentia acquired eight orphan Constellation Brands in June of 2008 as part of the $208,770,900 million deal that created AWE.
In that deal, all of AWE's land and wineries were acquired for $115 million by SBV VinREIT, an LLC operated by Kansas-City-based, Entertainment Properties Trust (NYSE:EPR). All the wineries and vineyards were then leased back to Ascentia.
VIP Subscribers click here to read the complete, un-redacted, 2,617-word original article.
Also In This Article:
The full text of the following sections is available to
VIP Premium Subscribers).
- GESD PROVIDED BULK OF FUNDING, GOT HEFTY FEES
- GIRAUDO ONLY INVESTOR NOT SUED
- AGREEMENT KEPT DEUTSCH FROM PROPER DUE DILIGENCE
- IMPOSSIBLE FOR ASCENTIA TO MAINTAIN PREVIOUS SALES LEVELS
- DEBONIS SHOULD HAVE KNOWN ABOUT "INFLATED FINANCIAL PROJECTIONS"
- GESD THREATENED TO SUE IF DEUTSCH INVESTIGATED
- MEDIA GIVEN WILDLY CONFLICTING ASCENTIA SALES FIGURES
- ASCENTIA: NO STRATEGIC PLAN + INABILITY TO MOVE QUICKLY
- DEBONIS NO "FREDDIE FRANZIA"
- FINANCIAL WOES PROMPTED ATTEMPT TO SELL BUENA VISTA WINERY
- VINREIT NIXED BUENA VISTA SALE
- BUENA VISTA "LAME" BRAND HURT POTENTIAL SALE
- BUENA VISTA NOW MOTHBALLED, HOPING FOR CUSTOM CRUSH
- BARGAIN BASEMENT SALES OF WINE TO INVESTORS & INSIDERS PROVIDED STOPGAP CASH, DEPLETIONS
- ASCENTIA TOO "BIG CORPORATE" FOR OWN GOOD
- TOP EXECS FAILED TO HALT "TOXIC ENVIRONMENT"
Not a VIP subscriber yet?
Subscribe now, and get the rest of this 2,617-word original article along with everything else on the site every day for just $9.99 per month or $115.88 per year.
Click here for more details.
Abstinence Not the Only Path to Recovery
Abstinence Not the Only Path to Recovery
November 24, 2009
News Summary, From Join Together Online
Most people who adhere to the tenets of Alcoholics Anonymous believe that total abstinence from drinking is the only route to recovery, but some addiction experts say that many drinkers can successfully curtail their dangerous drinking without giving up alcohol completely, the Los Angeles Times reported Nov. 16.
“We’re on the cusp of some major advances in how we conceptualize alcoholism,” said Mark Willenbring, director of treatment and recovery research at the National Institute on Alcohol Abuse and Alcoholism. “The focus now is on the large group of people who are not yet dependent. But they are at risk for developing dependence.”
Abstinence remains the best course for the profoundly addicted, but those who have not hit “rock bottom” may be able to control their drinking, experts said. The National Epidemiologic Survey on Alcohol and Related Conditions has shown that 30 percent of Americans have experienced an alcohol disorder, but 70 percent of them either quit drinking on their own or cut their drinking back to safer levels.
“It can be a chronic, relapsing disease. But it isn’t usually that,” Willenbring said.
“For a long time there was an emphasis on alcoholism as if it were one thing,” said USC addiction researcher Carol Prescott. “I think that has been abandoned. People with alcohol-related problems don’t all look the same at all. Some people only have problems for a short time. Others develop disorders that are ultimately fatal to them.”
“People with mild to moderate alcohol disorders can be treated with medications or behavioral therapy with a primary care doctor,” said Willenbring. “But many people can do this on their own without having a professional. The idea is teaching people how to reevaluate their drinking.”
“It’s a safer prescription to tell someone to quit,” said Prescott. “But the studies suggest that a large proportion of people are able to cut down and aren’t out-of-control.”
Posted by
lperdue
on Nov 25th, 2009 and filed under
Worth A Look.
You can follow any responses to this entry through the
RSS 2.0.
You can skip to the end and leave a response. Pinging is currently not allowed.
Subscribe to our feed
Are you kidding me…how much is this guy getting paid to get this published. I have 23 years sobriety and I can tell you that you are barking down the wrong path if you think you can trivialize recovery for alcoholics and try to make people believe that ….”you can handle it if you only cut back”. The person who can cut back in most cases is not in a situation where alcohol is controlling his or her life…..yet. Which you point out in regards to hitting rock bottom. But if a person has not hit rock bottom yet or cannot currently control his drinking and you are prescribing cutting back versus abstinence, I hope you are there to help pay for treatment for the alcoholic who actually believes this dribble.
Reading between the lines, your only hope is that if a person has not hit rock bottom yet, make sure you get your dose of wine in before you do hit rock bottom, because it is inevitable if his genetic make up is destined for it anyway, prolong it with wine. It will help you be a more “refined” drinker destined for disaster. Maybe you can get some of the wine manufacturers to offer sample bottles to people coming out of a AA meeting….Get a clue. Print what you know and not what you hope will sell more wine via someone elses demise.
This is so much BS. “We’re on the cusp of some major advances in how we conceptualize alcoholism,” I love that line. Come with me and I’ll show you the REALITY of alcoholism without needing conceptualization. Only non-alcoholics can ever drink with impunity. EVERY time I drink bad things happen. I had a therapist tell me once that maybe I had out grown AA. I told him I was glad I had as much time as I did (29 years sober at the time) other wise he may have well just signed my death sentence. A newer more vulnerable person would have taken that as license to drink.
Oh well there are people that claim if I read their book I can lick alcoholism. Time will prove this batch of “researchers” wrong as well. I’ve been to plenty of funerals of people that thought they could drink like normal people. I’ll keep coming back to ensure I can enjoy my employment in the wine industry. I sure don’t have to drink the stuff.