Bankruptcy filing by Renwood Winery's parent called pressure tactic

The chairman of a leading Amador winery says he is using a bankruptcy filing to bring his lender to the bargaining table.

The parent company behind Renwood Winery, which produces 100,000 cases of wine each year, earlier this month filed for Chapter 11 bankruptcy protection. Robert Smerling, founder and chief executive officer of Renwood Winery, said the filing won't affect its ability to make or sell wine, but was aimed at getting TLA Holdings, a subsidiary of MetLife, to discuss a loan.

Renwood Winery itself has not sought bankruptcy protection. Rather, the bankruptcy petitions were filed on behalf of the winery's parent company, Renwood Group Inc., and its sibling, Renwood Vineyard Properties. The latter oversees some of Amador's signature vineyards and lists farming equipment among its assets.

"MetLife is the largest secured creditor," said Smerling. "We have plenty of assets and hope to resolve this matter quickly."

In court filings, Renwood Vineyard Properties listed assets of $14.7 million and liabilities of $8.3 million. (About 90 percent of that liability is owed to TLA Holdings, according to court records.)

The Chapter 11 filing also accomplishes something else for Renwood. It will stop any foreclosure proceedings that are under way.

Foreclosures.com shows that TLA Holdings had filed a notice of default against Renwood Vineyard Properties, the first step in the foreclosure process.

A representative from TLA Holdings could not be reached for comment Thursday.

Smerling linked the bankruptcy proceedings to an expansion of the company's Twin Rivers Vineyard. Renwood Vineyard Properties borrowed $1 million to plant 66 additional acres in the Shenandoah Valley vineyard. Its banker was acquired by MetLife, Smerling said, but MetLife wouldn't roll that expense into an existing loan.

"We're not looking to short-pay anyone," said Smerling. "We just want to get this loan proper and have someone return our calls."

Renwood Winery, which attracts 40,000 people a year to its Plymouth tasting room, was founded in 1993. Its farming operation includes the Grandpère vineyards, which grow clones of zinfandel that date to the mid-1800s. Renwood's wines are distributed nationally and in Canada and Japan, among other countries.

Smerling worked on Wall Street and was a venture capitalist before launching Renwood Winery.

The bankruptcy filing isn't a reflection on how the Amador wine region is performing financially, said Jamie Lubenko, executive director of the Amador Vintners Association.

"We're certainly all feeling the effects from the economy, but we've been experiencing growth in our region," she said. "Four new wineries have opened recently, and some are being built."