LEGACY AGREES TO PAY MOST OF THE $5ML TO LOCAL VINTNERS

California wine company Legacy Estate Group has agreed to pay off most of the $5.1 million they owe to vineyard owners in order to assure access to high-end grapes this year. A company lawyer, David Chandler, said, “These wineries make high-end products, and for high-end products you need high-end ingredients.” After filing bankruptcy quickly after last year’s grape harvest, Legacy agreed to pay 25 of its 36 growers in full. The other 11 vineyards were either rejected in court or their contracts were expired. The company got into debt after borrowing heavily to purchase two wineries once owned by the Robert Mondavi Corporation, Arrowood and Byron, last year. The $40 million acquisition came after Legacy bought the historic Freemark Abbey Winery in St. Helena in 2001, putting the company on the map. Over 450 creditors now have claims totaling between $50 million and $100 million. Legacy has 60 days to pay back the vintners “100 cents on the dollar,” or their claims move to the front of the line before any other creditor.