Spring Mountain gets further interim approval to use cash collateral

By Sarah Lizee

Olympia, Wash., Oct. 18 – Spring Mountain Vineyard Inc. secured further interim approval to access cash collateral, according to a minute entry filed Tuesday with the U.S. Bankruptcy Court for the Northern District of California.

The debtor’s only secured creditor is MGG California LLC, which is administrative agent and collateral agent for a group of lender affiliates.

Spring Mountain entered into a credit facility with MGG in October 2018 and obtained a loan of $185 million. Since then, the facility has been amended twice, and a forbearance agreement has been entered into and amended, most recently in July.

With one exception, MGG possesses a security interest in all of the debtor’s assets. It also has a security interest in two non-debtor assets.

According to Tuesday’s minute entry, the debtor has reached a stipulation with MGG on the use of cash collateral until Nov. 4.

A final hearing is scheduled for Nov. 2.

The Saint Helena, Calif.-based winery filed bankruptcy on Sept. 29 under Chapter 11 case number 22-10381.

© 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.