WINE INDUSTRY INSIGHT
EMAIL EDITION - VOLUME I, NUMBER 128 - October 23, 2009
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New Vine Files For Chapter 7 Liquidation
New Vine Logistics has filed for Chapter 7 liquidation in the U.S. Bankruptcy County for the Northern District of California.
The filing was made Oct. 23 — the same day that Wine Industry Insight reported Amazon’s sudden silent abandonment of its online wine sales partners.Amazon has made no comment on its abrupt departure. However, the New Vine bankruptcy filing partly confirms observations that the meltdown of New Vine played a substantial role in the online giant’s decision to cancel a program of direct wine sales.
IBG MAY BE FORCED TO GIVE BACK NEW VINE ASSETS
Inertia Beverage Group (IBG) acquired all the assets of New Vine in a controversial auction on July 27. However, rules and procedures governing payments and asset transfers that occur within one year of a bankruptcy may force IBG to return the assets. That matter will have to be determined by the court.
ASSETS = $0, LIABILITIES = $7 MILLION
Because IBG acquired all of New Vine’s assets in July, the bankruptcy petition lists no assets against $7,034,963.12 in liabilities.
Unless IBG is compelled to return the assets it acquired, none of the 180 creditors is likely to recover anything.
MORE DETAILS LATER TODAY
Wine Industry Insight will publish more details later this morning.
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