Winery at risk over $565,000 debt call

National farmWinery at risk over $565,000 debt call Agrifirm streamlines branches to unlock potential New group raises Zespri transparency concerns Vineyard in receivership Fonterra doubles milk powder auctions Rain puts a dampener on wool sales Wang bankruptcy hearing adjourned Will glut sour vintage? Reid a cut above the rest Farm adviser made officer The future of a Hawke's Bay winery hangs in the balance as creditors claim they are owed $565,000.

The local grapegrowers' association is warning that Park Estate Winery may not be the only winery to hit hard times.

A group of more than 60 unsecured creditors say the winery owes them $565,000. However, the winery disputes the amount. Twenty-eight creditors met yesterday to vote on whether to accept a proposal by the winery that would see the debts go unpaid for a further 11 months.

Creditors are to be informed of the vote result today.

The winery, owned by Owen and Dianne Park, made a court application to stay proceedings and prevent any restraining or enforcement measures so it could put in place the compromise proposal.

The proposal was opposed by creditors but Associate Judge Hannah Sargisson allowed until yesterday for a creditors' meeting to take place. If the proposal was not accepted "then an order for liquidation will be inevitable", she said.

Mrs Park would not comment yesterday.

Park Estate winery and restaurant is on 20 hectares between the Ngaruroro and Tutaekuri rivers and produces 10,000 cases a year of red and white wines. It is is the second big wine producer to face financial trouble this month. Westpac pulled the plug on Aucklander Barry Sutton's Awatere vineyard last week, handing control of two companies to accountants McGrathNicol.

Hawke's Bay Grape Growers Association president Xan Harding said he "would be surprised if there were not more" wineries forced into receivership in the next few years.

Hawke's Bay had felt the effect of the global financial crisis and an oversupply of Marlborough sauvignon blanc.

"It's definitely been eroding the sales of Hawke's Bay white wines and we've still got a good couple of years of pain to go through," he said.

"There will inevitably be people that don't survive that long. Some are surviving on capital and the tolerance of the banks."