Lolonis Winery Melts Down, Growers Scramble To Get Paid $1.1 Million+

The precipitous meltdown of Mendocino County’s Lolonis Winery has left growers scrambling to recover whatever they can of more than $1 million in unpaid winegrape bills. And while grower liens may offer some partial comfort, they will need to fight to recover anything at all in the upcoming Superior Court battle over the winery’s liquidation.

The legal battle also has the makings of a family feud. Lolonis Winery is owned by a subset of the Lolonis family which also owns Lolonis Vineyards, Inc. Court records clearly show that  Lolonis Vineyards, Inc., which also owns the real estate used by the winery, has operated as a separate business.

Lolonis Vineyards, however, finds itself in the thick of the battle because they:

• Are the winery’s second largest creditor.
• Have filed the largest grower claim for unpaid grapes.
• Used their vineyard real estate to guarantee the winery’s business loans from First National Bank of Northern California (FNBNC).

FNBNC is suing both the Winery — and the Vineyard as guarantor — to recover funds involved with Lolonis Winery’s mid-2010 default on its debt.

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Also In This Article:

The full text of this  1,460-word article is available to subscribers of Wine Executive News.

• LEGAL BATTLE NOW BACK IN MENDO SUPERIOR COURT WHERE IT STARTED

• BANK SAYS REAL ESTATE SECURING LOANS NOW UNDER WATER

• ASTOUNDING FINANCIAL CRASH BEGAN IN 2007

• LIST OF GROWERS OWED $1+ MILLION

• GROWER LIENS MAY OFFER SCANT COMFORT

• TOP 20 UNSECURED CREDITORS MOSTLY GROWERS

• LIST OF LARGEST SECURED CREDITORS

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