Calneggia steps down from AWH

Veteran wine industry player Mike Calneggia has resigned from Australian Wine Holdings Ltd, the company which is chasing resources investments after selling the bulk of its wine assets in the wake of the grape glut.

Mr Calneggia agreed to buy AWH's wine distribution business, Wine Shack Pty Ltd, in June.

That deal settled yesterday, which is expected to generate $865,675. However, the bulk of the proceeds havel been used to repay a debt to Mr Calneggia's company Viticultural Asset Management Pty Ltd.

AWH, which is chaired by Dalton Gooding, said Mr Calneggia was leaving to pursue private investments.

Mr Calneggia retains 25,273,611 shares in the company, which are worth about $1 million.

AWH owns Manjimup winery Chestnut Grove and the Tall Timber wine brand and said it would continue to have access to "Mr Calneggia's industry skills through consulting services to be provided on normal commercial terms".

AWH sold its Hay Shed Hill brand and winery to a consortium including former Howard Park winemaker Mike Kerrigan.

AWH also sold its Karridale wine facility to Stella Bella Wines Pty Ltd for $4 million.