A Cromwell winery owes about $6 million to secured creditors and an estimated $1.2 million to unsecured creditors as receivers begin preparing the business for sale.
WHK Cook Adam Ward Wilson receivers Duncan Fea and Alistair King have released their first report on Central Otago Vintners, which was placed in receivership on September 19.
The report showed Southland Finance, which holds the first mortgage, was owed $4,736,280 and second mortgage holder Secured Lending Ltd $1,331,959.
A total of $14,268 was owed in wages, holiday pay and PAYE at the time of receivership. Unsecured trade creditors are estimated to be owed $1,260,268.
Mr Fea said receivers were finalising the last of the building and development certificates required for the two-year-old property, and a sale information memorandum would be prepared for prospective buyers.
He was confident the facility would sell for a good price.
There had already been interested parties, and once the memorandum was completed those parties would be able to find out whether they wished to proceed to a formal tender document, he said.
The contract winery processing company is located on Ripponvale Rd on the outskirts of Cromwell.
The current operation can process 650 tonnes of grapes with plans already drawn up for a 600 tonne increase in capacity.
Winemaker Jed Penkman is processing the 300 tonnes that remain on the site.
Director and sole shareholder Robin Schulz had blamed the current financial climate and difficulties in financing and picking and processing of a 20% increase in last year's grape crop, compounded by the failure of an overseas investor to complete settlement of a major stage of the McArthur Ridge vineyard.
