- 7 -
1986, Bank of America offered to renew Winery's line of credit in
the amount of $1,100,000, subject to continued subordination of
Vineyards' claims against Winery to those of the bank and other
restrictions on payments by Winery to Vineyards further described
below. The terms imposed in connection with the renewal of the
line of credit continued until Winery ceased dealing with Bank of
America, which occurred during 1988.
During November 1988, Winery negotiated a $1,500,000 line of
credit from Napa National Bank, which also agreed to provide a
construction loan of $2,200,000 to build Winery's plant and an
equipment loan of $550,000. The bank required the same
subordination of Winery's debts to Vineyards to Winery's
obligations to the bank, the same cross-collateralization by
Vineyards, and the same payment schedule as Bank of America had
required. During 1990, Winery's plant, which had the capacity to
produce 40,000 cases of wine, was completed and occupied. Also
during 1990, Winery began using the term "estate bottled" to
describe its wines, meaning, inter alia, that Winery controlled
the viticultural practices of the vineyards in which the grapes
from which the wines had been made were grown.
The following table summarizes Winery's wine sales through
1990:
Year Sales
1982 $0
1983 28,402
1984 384,921
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011