04.29.2016  
 

Deerfield emerges from Chapter 11

Kenwood, Calif.—Deerfield Ranch Winery in the Sonoma Valley released a statement saying it had successfully restructured its debt with Rabobank and has left Chapter 11. The winery’s plan for reorganization was approved by a U.S. bankruptcy court judge and will include payment for all of the winery’s creditors and the deal with its principal lender Rabobank.

According to the statement, Deerfield sought protection of the court after experiencing substantial delays in completing a left turn lane off Highway 12 that was a condition of opening their newly 23,000-square-foot wine cave and tasting room. The road construction took five years and substantially reduced Deerfield’s revenues. The left turn lane was eventually completed, and the wine cave and tasting room have proved popular with consumers.

“Deerfield’s operations have been profitable for several years. The delay in opening the tasting room was a problem that is now behind us. We look forward to expanding our wine business as well as our substantial custom crush business. We are extremely optimistic about the future of the Deerfield Ranch Winery. As a matter of fact, we are releasing our first Sparkling wine, a vintage blanc de blanc to celebrate our reorganization,” said Robert Rex, winemaker and managing partner.

The deal for a restructured and extended lending agreement with Rabobank was the linchpin in putting a plan together, and now that it’s been accomplished the winery is exploring other partnerships.

Deerfield has already received multiple business offers, including a creamery partnership, foreign investors, and wineries looking for a public tasting room on Highway 12. “We are looking for the perfect fit,” said managing partner P.J. Rex. “Now that we have reorganized our debt, we will be our exploring our options.”
 

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