Bank Charges Barrel Stop “Incompetently Managed,” Urges Trustee & Asset Sales

Mechanics Bank, which holds more than $3.6 million of first-priority promissory notes for the bankrupt Barrel Stop/Dominari Winery, has charged that:

• The debtor is incompetently managed,
• The only viable alternative is a sale of the company’s assets and,
• A trustee must be appointed because the current owners have a conflict of interest.

No response has been filed yet on behalf of Barrel Stop/Dominari. The company had been given a January 15 deadline by the court to present a plan for emerging from bankruptcy or face Chapter 7 liquidation. That deadline was extended to March 30.

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Also In This Article:

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• PAYMENTS AND REPORTS LATE OR NOT MADE AT ALL
• OUT OF CASH
• COMPANY HAS INCURRED SUBSTANTIAL LOSSES SINCE CHAPTER 11 FILINGS
• BANK PANS STATED REAL ESTATE VALUE
• CONFLICTS OF INTEREST
• HEARING SCHEDULED  ON TRUSTEE ISSUE

PREVIOUS WINE INDUSTRY INSIGHT COVERAGE OF BARREL STOP/DOMINARI WINERY

Barrel Stop Faces January Deadline For Chapter 11 Plan Approval
Barrel Stop Winery of Napa (also dba Dominari Winery) must gain creditor approval for a Chapter 11 plan by January 15, 2012 or be converted to Chapter 7 liquidation according to an order by Judge Alan Jaroslovsky of the U.S. Bankruptcy Court for the Northern District of California. Barrel Stop’s most recent filings list $8,617,521 … October 19, 2011

Barrel Stop/Dominari Files Chapter 11 Bankruptcy
Custom-crush winery Barrel Stop, which also produced its own wine under the Dominari label, filed for Chapter 11 Bankruptcy protection early today, July 28. The company had previously defaulted on its real-estate and equipment loans to Mechanics Bank and faced a foreclosure sale, also today. That sale was postponed by the Chapter 11 filing … July 28, 2011

Foreclosure Sale Date Set for Napa’s Barrel Stop/Dominari
Custom-crush winery Barrel Stop, which also produces its own wine under the Dominari label, has defaulted on its real-estate and equipment loans to Mechanics Bank and faces a foreclosure sale in July. The company also must deal with IRS liens and a Napa Superior court judgment from a custom-crush customer that sued over misplaced wine … June 15, 2011

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