Winery receivers sell 3000 cases

Receivers have sold almost 3000 cases of wine from an established Central Otago winery near Alexandra.

William Hill Winery, first planted in 1973, was a victim of the recession and went into receivership in May 2009, owing $4.23 million to Southland Building Society for property, stock and equipment.

Wanaka-based accountant Alistair King and chartered accountant Peter Heenan, of WHK Southland & Central Otago, filed their fourth receivers' report last week.

The report says the receivers continue to market the business and related assets for sale, 2734 cases of wine were sold and 2519 cases remained.

The Dunstan Rd business includes a 7.5ha vineyard, 300-tonne winery, plant and equipment.

Mr King yesterday said the business was for sale with Bayleys Real Estate but interest was muted given the global recession and economic downturn.

"In New Zealand and Australia there has not been any investors looking to enter (the market)."

Cases of wine sold by the business – which is leased by the receivers – included existing stocks of William Hill-label wine and Shaky Bridge vintages, he said.

There were some encouraging signs of industry recovery, including an increase in wine prices after "a fair chunk" of discounting after a bumper 2008 vintage, Mr King said. "Because of lower production in 2009-2010 the supply and demand equation is coming back into balance."

The Alexandra winery was being maintained, vines were tended and existing stocks sold off, he said.

Mr King declined to say who had leased the winery.

Accounts to the end of the past year include $706,000 in domestic sales and exports of $63,000.

Fees paid included operating expenses of $207,000, legal fees of $58,280 and $22,686 repaid to SBS.

Receivers' fees between May and November were $184,500.

Other secured creditors include Quadrent Ltd, owed $20,934 for wine barrels and racks and Ascend Finance in Palmerston North, owed $310,497.

Unsecured trade creditors were owed $574,881, but the report says a surplus from any sale was unlikely.