AWL finalises $7m Hay Shed Hill winery sale

South Perth-based wine producer Australian Wine Holdings Ltd has finalised the sale of its Hay Shed Hill winery for around $7 million, just days after announcing the $4 million sale of its Karridale winery.

The full text of a company announcement is pasted below

The Board is pleased to advise that Australian Wine Holdings Ltd has settled the sale of the Hay Shed Hill winery including land, buildings and plant and equipment for an effective price of approximately $7m. The adjusted proceeds received of approximately $6.5m provided for inventory sold and certain assets retained during the period between contract exchange and settlement.

Proceeds from the settlement has retired all convertible note debt with the balance applied toward working capital.

The Company's only remaining secured debt is a short term loan provided by a director related company Viticultural Asset Management of $1m which is due for repayment at the end of February 2007.

AWL continues to produce and market wines under the Chestnut Grove, Tall Timber, Alexandra Bridge, "101" and Bunker Bay labels and operate the leasehold Chestnut Grove winemaking facility and vineyard. The company's Wine Shack direct and distribution wine sales business continues unchanged.