Court places Mike Weir Wine Inc. in receivership, company owes more than $6M - InfoNews

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Court places Mike Weir Wine Inc. in receivership, company owes more than $6M

A man pours a bottle of Prosecco during a wine tasting at the Case Paolin farm, in Volpago del Montello, Italy on Oct. 15, 2018. A court placed Mike Weir Wine Inc. into receivership as the winery owes more than $6 million. THE CANADIAN PRESS/AP, Luca Bruno
February 04, 2019 - 10:49 AM

TORONTO - A court has placed Mike Weir Wine Inc. into receivership as the winemaker owes more than $6 million.

Court documents say the corporation that produced, marketed and sold wine from a Beamsville, Ont.-based winery, which closed somewhere around April 2018, owes the Masters champion golfer about $2.2 million and RBC about $4.3 million.

Justice Hainey of the Ontario Superior Court of Justice appointed BDO Canada Ltd. the monitor Jan. 30 after Weir filed an application earlier in January asking the court to do so in order to arrange a sale that permits the buyer to take advantage of the spring growing season.

Court documents say a company related to Robert McCown became the owner of 15 per cent of the corporation's shares in 2013 and the remainder of its shares in October 2017.

The corporation issued three promissory notes to Weir on Oct. 20, 2017 that it was to pay back a year later, but court documents allege it failed to repay what now amounts to roughly $2.2 million — some of which is secured against the winery and its physical assets.

Some of the debt was to be forgiven if the winery was sold by the time repayment was due on the notes and the secured notes were repaid in full.

After Weir's application, McCown requested a brief adjournment to allow for the negotiation and closing of a sale to a potential purchaser of the winery who intends to make an offer over $7 million — enough to repay the corporation's debts.

He says the claim that the winery is in danger and needs a receiver to protect it "is incorrect."

He says the winery has been listed for sale since late 2017, but this is the first buyer who has indicated they will make an offer.

News from © The Canadian Press, 2019
The Canadian Press

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