Conti Faces Hearing On Winegrape Liens, Misses Filing Deadline

Three growers who sold to MC2 Wines, dba Charles B. Mitchell Vineyards/Conti Estate Winery have been granted a hearing to determine if they will be allowed to enforce their liens for unpaid winegrapes. The grapes, from the 2008 crush, have been made into wine which is stored at the winery.

Michael S. McManus, United States Bankruptcy Judge for the Eastern, District of California, granted the request of the growers:

• Michael Chaden, dba Perry Creek Vineyards,
• Byron and Sherrill Jodar, dba Pleasant Valley Vineyards, and
• William Naylor

and set a hearing on the matter for 9 a.m., March 9 in Sacramento.

In the interim, Judge McManus ordered MC2/Conti/Mitchell not to sell the wine, transfer it or take any other actions which would “encumber” it. The winery was also ordered to segregate  funds from any previous sale of the wine.

DEADLINE FOR FILINGS PASSES

The winery, which filed for Chapter 11 Bankruptcy protection on Feb. 3, had been given until Feb. 18 to provide the court with a full set of schedules. Wine Industry Insight checked with the court moments before filing this article, and the documents still had not been filed.

In addition, no documents have been filed for the Contis’s personal bankruptcies as mentioned by their attorney in WII’s previous article.