Spring Mountain sets bid procedures for wine vineyard business

By Sarah Lizee

Olympia, Wash., Jan. 18 – Spring Mountain Vineyard Inc. is seeking approval of bid procedures for the sale of its wine vineyard business, according to documents filed with the U.S. Bankruptcy Court for the Northern District of California.

The business consists of about 845 acres of wine vineyard property located in Napa, Calif., as well as the wine-making and processing equipment, bottling equipment, certain rights to run the property, about 79,000 cases of wine inventory, and the debtor’s contract rights.

As part of the company’s agreement with its only secured creditor and debtor-in-possession lender MGG California LLC for continued use of cash collateral, the debtor retained BNP Paribas and Bank of the West as investment bankers for the sale process.

Under the proposed bid procedures, the stalking horse bid deadline is 3 p.m. ET on Feb. 17, the competing bid deadline is 3 p.m. ET on March 17, an auction will be held on March 24, if needed, and a sale hearing will take place in April.

Any qualified bidder’s initial overbid and each subsequent overbid must be at least a $500,000 increase in cash over the leading bid plus, if the stalking horse bidder has the then-leading bid, the amount of any bid protections.

A hearing on the bid procedures is scheduled for Feb. 15.

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

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