← Return to Archives - Subscribe to FREE NewsFetch Email Newsletter
From: lewis.perdue@wineindustryinsight.com

Subject: IBG Delays Auction, Threatens Potential Investors, Contends With NVL Palace Coup

Date: 2009-07-13 22:44:31

To: Emailing List Subscriber
Please use CMD+F (Mac) or CRTL+ F(Windows) to find your specific search term within this issue of NewsFetch. This "double search" is due to our links sourcing from websites not within WineIndustryInsight.

EMAIL EDITION - VOLUME I, NUMBER 106 - July 13, 2009

Click [UNSUBSCRIBE] to unsubscribe to this free email edition.

THIS ISSUE SPONSORED BY:

 and


IBG Delays Auction, Threatens Potential Investors, Contends With NVL Palace Coup

Multiple sources noted Monday that the Inertia Beverage Group/New Vine saga has gotten weird enough to merit its own reality show. While developments have been sketchy, Wine Industry Insight has managed to corroborate the following with multiple sources familiar with the events:

NEW VINE AUCTION DELAYED

IBG has delayed the auction of New Vine’s assets until July 27. The auction drew scant attention, with only four bidders in the game besides Inertia itself. Sources confirm that the bidders included:

  • Copperpeak,
  • Wine.Com,
  • Wine Tasting Network, and
  • A fourth company which reportedly withdrew from bidding.

Bidders were not allowed to examine the New Vine assets until today. An independent source (not a bidder) said that bidders were not satisfied with the disclosure of the assets to be auctioned and that they did not have enough time to determine what value still remained at New Vine now that most clients have fled.

“As New Vine’s lead creditor, we believe that extending the auction date is in the best interest of all parties involved and will strengthen the potential to maximize the value of the New Vine assets,” said Ted Jansen, president and CEO of IBG.

BRIDGE LOAN INVESTOR TROUBLES?

A source from within IBG added that the company was “getting pushback” from  investors in its $9 million bridge loan which was scheduled to close the same day as the New Vine Auction.

As WII reported on July 8, IBG documents show that on June 8, IBG’s two largest investors, Allegis Capital and Sid R. Bass Associates invested $4 million in the bridge funding round which had previously been on the table. Then, on June 12, The board increased the size of the bridge round to $$9,116,781 in order to accommodate a request from New-York-based Private Equity Investors, Inc. (PEI Funds) to invest $2 million. The board has also set aside $2,516,781 for current stockholders. The $9 million bridge loan is scheduled to close on July 14 — the same day as the New Vine asset auction.

In addition to outside investor concerns, existing stockholders have given a chilly reception to joining the bridge round.

Inertia Beverage Group did not respond to a request for comment on this issue.

NEW VINE FOUNDER SHOPPING HER PLAN FOR CHAPT 11 PLUS RESURRECTION AS DIRECT-TO-TRADE

New Vine Founder Kathleen Hoertkorn has mounted a palace revolt, frantically shopping her own plan which would take NV into a voluntary Chapter 11 bankruptcy so the company could re-organize in the Direct-to-Trade mode. Hoertkorn and her team have been having morning, noon, and night sessions with interested parties.

“She’s got the support of the subordinated, secured creditors who feel this would be the fairest way to go,” said one creditor.

“I’m considering ponying-up some additional cash to help provide debtor-in-possession funding,” added another creditor.

“PLUMBERS UNIT” SEEKING SOURCE OF LEAKS

Wine Industry Insight received numerous phone calls, emails and text messages from people who say they felt threatened by IBG representatives seeking to determine who leaked the company’s well-circulated Series C offering proposal.

“I don’t respond well to pressure,” said a voicemail from a furious caller. “They can just go f**k themselves if they think I’m the source. I don’t even like you (Lewis Perdue). I didn’t like you when you owned Wine Business Monthly, but I like you better now than I do them.”

Inertia Beverage Group did not respond to a request for comment on this issue.

WINE INDUSTRY INSIGHT TAKES SOURCE CONFIDENTIALITY SERIOUSLY

All voicemails, emails and text messages have been deleted. All data deletions from Wine Industry Insight computers and servers are wiped with PGP Corp’s utility which exceeds the Department of Defense’s media sanitization standard 5220.22-M.



THIS ISSUE SPONSORED BY:

Miramont Estate: Put our prize-winning wine in your bottles
and
Wild Rose Vineyards: Quality Custom Crush




================= CONTACT DATA ====================
Lewis Perdue
670 W. Napa St., Suite H, Sonoma, CA 95476
Phone: 707-326-4503, fax: 707-940-4146
Email: lewis.perdue@wineindustryinsight.com