Indian Springs Vineyards put on allowance |

Indian Springs Vineyards put on allowance

Indian Springs Vineyards of Penn Valley has been put on an allowance by the U.S. Bankruptcy Court in Sacramento and ordered to turn over samples of its wine for evaluation by a well-known wine broker.

While the business argues with its creditors over who should get $600,000 owed the vineyard, the court gave Indian Springs permission to spend $102,000 on basic operations from July 7 through July 27.

The court also authorized expenditure of another $160,000 through Aug. 31, the day before a hearing on the disputed funds. The hearing on general partner Dennis Ball’s request to use the money for company operations has been delayed three times.

Indian Springs was also ordered to provide samples of wine currently in bulk storage for evaluation by the Joseph W. Ciatti Co. in San Rafael. The request was made by one of the winery’s major creditors, PremierWest Bank of Medford, Ore., to determine the value of the wine inventory.

Indian Springs sought protection under Chapter 11 of the U.S. Bankruptcy Act on June 15, just hours after PremierWest filed suit in Nevada County Superior Court seeking to place the vineyard in receivership.

The bank and a second creditor, TransAmerica Life Insurance Co., allege in court filings that Indian Springs and Ball are in default on over $8 million in loans.

Chapter 11 allows a company to continue operating while making arrangements to restructure its debt. The company has yet to file a reorganization plan.

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