13/06/2008 - 09:32

Palandri asset sale complete

13/06/2008 - 09:32

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The voluntary administrators of Palandri Wine Group today confirmed the completion of the sale of certain assets to the newly formed and privately owned, Global Wine Holdings Pty Ltd.

Palandri asset sale complete

The voluntary administrators of Palandri Wine Group today confirmed the completion of the sale of certain assets to the newly formed and privately owned, Global Wine Holdings Pty Ltd.

The sale includes the Margaret River Winery, the Palandri brands and the majority of the wine inventory.

Deloitte partner Gary Doran, who is one of the joint voluntary ddministrators for Palandri, said the sale was a positive development for Palandri stakeholders.

The administrators announced in April that the assets were to be sold to Global Wine Holdings Pty Ltd, following a sale process which involved fourteen parties expressing an interest in the assets.

"This sale is a major achievement as it preserves the integrated wine business, ensures continuity of employment for the majority of staff and maximises the potential returns to creditors and investors," Mr Doran said.

Mr Doran said this was the first step towards unlocking the value of Palandri's management investment schemes.

"The sale provides for the maintenance of all the managed investment scheme vineyards for up to 12 months. This will allow time for the administrators to work with investors to determine the future of their investments," he said.

"In July, I will be providing investors with a comprehensive report on the financial position of each of the management investment schemes and an analysis of their options.

"A meeting of the investors will then be convened, at which they will determine the future of the managed investment schemes.

"A meeting of the Company's creditors will also be convened at the same time to consider a proposal from the Directors for a Deed of Company Arrangement," Mr Doran said.

It is expected that both meetings will be held in early August.

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