Cash-strapped Gibbston Valley Wines Ltd's owners are making no comment on whether shareholders have agreed to put up $2.5 million in working capital for the landmark winery, which has lost $2.64 million during the past two financial years.
The company held its annual meeting at its Gibbston Valley winery on Monday, but neither company sources nor its board were commenting on its restructuring and future.
One source close to the company played down the earlier warnings by company chairman and 60% shareholder Phil Griffith, who had written that the company had to restructure and recapitalise, or one option was to place it in liquidation.
Neither Mr Griffith nor chief executive Greg Hunt returned calls yesterday.
Last September, Mr Griffith's family trust refinanced the winery with a $1.42 million loan to keep it solvent.
The company has a floating loan with the ANZ Bank for $3.68 million and its total current liabilities amount to $7.02 million while its non-current assets, mainly property, plant and equipment, is valued at $6.8 million.
It was planned wine stocks, valued at $4.37 million, would be reduced and the $2.5 million recapitalisation would be used to pay debt, in tandem with expectations of a rebound in sales, to get Gibbston in a positive cash-flow position.
