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Stevenot Brand Sale Closes, Munari Retains Winery

March 4, 2010 | Filed under Featured Articles | Posted by

Sutter Creek-based Oliveto Distributing Inc. finally closed its purchase of the Stevenot wine brand on Feb. 24 when a bankruptcy court confirmed the Chapter 11 reorganization plan of Golden Eagle Estates LLC.

Jack Munari, the principal of Golden Eagle Estates purchased the Stevenot Winery and brands from Barden Stevenot in 2006 and took it into Chapter 11 reorganization on Jan. 9, 2009 in U.S. Bankruptcy Court for the Central District of California.

Under the previous ownership, the Murphys, CA winery had filed for Chapter 11 on January 24, 2005 and emerged from that proceeding June 21, 2006.

Under the reorganization plan, Munari retains control of the winery facility.

BRAND PURCHASE, INVENTORY SALE FUNDS REORGANIZATION

Oliveto — which has distributed Stevenot wines since the early 1980s — has made a down payment of $400,000 which will be used to pay debts of Golden Eagle Estates.

According to the purchase agreement ($ VIP subscriber content) and the Golden Eagle Estates Reorganization Plan’s Disclosure Statement ($ VIP subscriber content) , Oliveto has agreed to buy the Stevenot name, brand, trademarks and other intellectual property as well as the Stevenot Wine Club.

In addition to the payment of $400,000, Oliveto has agreed to purchase an additional $400,000 to $500,000 worth of wine from Golden Eagle.

The funds from those wine sales are earmarked to be paid directly to Bay Sierra Financial, Inc, the loan servicer which holds the trust deed on the winery’s real estate and personal property.

BAY SIERRA TO MODIFY WINERY LOAN

As part of the reorganization plan, Bay Sierra Mortgage of Santa Rosa has agreed to modify its loan to Golden Eagle Estates.

The court approved a set of Bay Sierra’s conditions ($ VIP subscriber content) and its modification documents ($ VIP subscriber content) as part of the plan confirmation.

Among the conditions, Bay Sierra will require a personal guarantee from Jack Munari for the $2,764,342 loan. The original loan was for $2,470,000.

The conditions also include timely monthly payments of $17,277 per month on a 36-month note.

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