South Perth-based wine producer Australian Wine Holdings Ltd has sold its Karridale winery to a Western Australian company for $4 million.
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 Karridale winery including land, buildings and plant and equipment for $4m.
AWL retains ownership of the labels, oak barrels, packaged and bulk wine stocks required to produce, market and distribute the "Alexandra Bridge" and "101" labels via third party provided winemaking facilities.
Proceeds from the settlement have retired all first ranked bank debt with the balance held in trust on behalf of Convertible Note Holders pending the imminent settlement of the Hay Shed Hill assets. The funds held in trust plus the proceeds of the Hay Shed Hill settlement will be used to retire all Placement and Convertible Notes and half of the loan provided by Viticultural Asset Management who will then hold the only secured debt.
Pending completion of the asset sales, AWL will continue to own and operate the Chestnut Grove winemaking facility in Manjimup and market wines under the Chestnut Grove, Tall Timber, Alexandra Bridge, "101" and Bunker Bay labels. The distribution business of Wine Shack continues unchanged.
AWL continues to operate as a boutique wine producer, albeit that the amount of capital tied up in production assets will be reduced by virtue of the completed asset sales.
