Deerfield Ranch Winery Chapter 11 Filings Show Unusual Financial Strength

By the time most troubled companies make it into bankruptcy court, they are financial corpses or on life support surrounded by creditors eager to grab whatever they can: spare change, uneaten Jello from dinner, the TV remote control, or the patient’s slippers, pacemaker, medication, or body parts that can eventually be divided up in a financial free-for-all after the lawyers are paid.

Then — rarely — along comes a company like Deerfield Ranch Winery with federal bankruptcy court documents that show a strong positive balance sheet with assets almost twice liabilities, and  a solid base of custom-crush customers.

Rabobank: Improper Actions?

Assuming the numbers hold up to creditor and legal scrutiny, it raises questions about Rabobank’s decision to force Deerfield into a Superior Court receivership. Deerfield contends that Rabobank acted improperly in that legal maneuver which forced the winery to file for Chapter 11 reorganization action to stay the receivership while management makes its case.

“It is ironic that we had to do this,” said  Deerfield Ranch Winemaker and Managing Member, Robert Rex. “Even the BK Trustee said we were in good shape compared to the typical Ch 11 company. We are a profitable company and are growing.

“Sales to date this year over last are up over 30%,” said Rex. “It is heartening that we have support from almost all  of our vendors and tremendous support from our customers and others in the industry.  It has been business as usual. The work load for the managers, because of the court, has, however ,doubled.”

The Chapter 11 Status Conference Order hearing is scheduled for 9 a.m., April 17 at the Santa Rosa Courtroom of the U.S. Bankruptcy Court for the Northern District of California.

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Also In This Article:

Secured Claims: Rabobank=92%, Rest Owed In Taxes and To Growers

Reality-Based Asset Valuations

Healthy Custom Crush Operation

Income

Receivables

Cash On Hand

Payables (Unsecured Non-Priority Claims)

Payables Aging:20 Largest Unsecured Non-Priority Claim

Creditors Holding Unsecured Priority Claims

LLC Investment

Documents available  available to premium subscribers of Wine Executive News:

• Statement of Financial Affairs

• 20 Largest Unsecured Claims

• Summary of Schedules

• Declaration of Greg Nelson

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