It is probably too early to assume that Indage Vintners is on the mend but it has taken important steps in that direction. Most recently, it came to a settlement with Australian Vintage Ltd over the failure to complete the purchase of the Loxton winery. Both cash and wine were involved in the settlement.
Back in March 2008, Indage had agreed to acquire the 90,000 tonne-capacity Loxton winery for $60 million. The sale was originally expected to close last summer but was deferred to October 2008 at which time Indage said that it was still committed to the acquisition but required more time to raise capital. In April 2009, Indage requested more time still but Australian Vintage Ltd. decided to take the matter to the Federal Court of Australia.
With this settlement, Australian Vintage Ltd. keeps the winery and has received an amount that has been applied towards the purchase of wine from Thachi Wines in South Australia which is owned by indage Vintners. This wine is in addition to a $6 million non-refundable deposit previously paid by Indage Vintners to Australian Vintage for the acquisition.
This news follows recent coverage in the press about mass resignations at Indage Vintners where 250 employees resigned because they hadn’t been paid their salaries in six months. Prior to the resignation, Indage Vintners had 450 employees on its payroll. Rumor has it that the company has Rs. 450 crore in financial liabilities.
Indage Vintners still has a long way to go to in its effort to return to its former self. But this is an important step in that direction and like many others we wish them the best of luck in recovering from these financial difficulties.