Winery hearing postponed |

Winery hearing postponed

Resolution of the dispute over who should get $600,000 owed Indian Springs Vineyards of Penn Valley has been delayed until at least Aug. 18 in U.S. Bankruptcy Court in Sacramento.

Lawyers for Indian Springs and its two major creditors, PremierWest Bank and TransAmerica Life Insurance Co., asked Judge Christopher M. Klein Tuesday to delay a hearing on the matter. The hearing was rescheduled for 10 a.m., Aug. 18.

Indian Springs, which filed for Chapter 11 bankruptcy protection June 15, has received $175,000 from Wine Asset Management, Inc. and is due another $425,000 from the firm. The winery is seeking permission from the court to use the funds to run its business while it works out a plan to restructure its debt.

PremierWest has opposed the petition, stating “the bank is skeptical of the purported profit potential of this debtor even on an interim basis … Any chance of reorganization is speculative.”

Indian Springs filed for bankruptcy just hours after PremierWest sought to place the vineyards and winery in receivership for allegedly defaulting on more than $4 million in business and personal loans. Indian Springs also owes TransAmerica $4,250,000.

The winery has asked the court for permission to add San Francisco attorney William K. Lukens, a specialist in lender practices and commercial litigation, to its defense team. The firm’s bankruptcy attorney is Mike K. Nakagawa of Sacramento.

– The Union staff

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