Vintage Wine Estates Inc. and its subsidiaries have filed a disclosure statement outlining their proposed joint plan of liquidation in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-11575-MFW), marking a significant milestone in the wine producer's bankruptcy proceedings.
The disclosure statement, filed by Richards, Layton & Finger, P.A. as debtors' counsel, details the company's path forward following its July 24, 2024 Chapter 11 filing. The plan proposes to consolidate the estates of 12 debtor entities for administrative purposes and establishes a liquidation trust to manage remaining assets and distribute proceeds to creditors.
According to the filing, prepetition secured lender claims total approximately $310.9 million, with projected recoveries of 39%. General unsecured creditors are expected to receive recoveries ranging between 5-8%, while holders of prepetition secured lender deficiency claims are projected to receive between 1-4%.
The plan emerged from a mediated settlement agreement between the debtors, creditors' committee, and secured lenders. Key provisions include an initial cash payment of $89.2 million to prepetition secured lenders and the creation of a liquidation trust overseen by Stapleton Group, a part of J.S. Held.
Prior to bankruptcy, Vintage Wine Estates operated as one of the largest wine producers in the United States, with over 30 brands and 400 employees across 15 states. The company cited decreased wine demand, challenges integrating numerous acquisitions, and material litigation as factors leading to its bankruptcy filing.
The company has already completed several significant asset sales during the bankruptcy, including the sale of various wine brands and facilities to buyers such as Foley Family Wines, Adair Winery, and other industry players.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.