21 May 2012

NZ Wine Company seeks way to repay debt

9:21 pm on 21 May 2012

Foley Family wines is owned by American billionaire, Bill Foley, and its brands in New Zealand include Clifford Bay, Goldwater and Dashwood.

New Zealand Wine Company markets the Grove Mill, Sanctuary and Frog Haven brands but has been in financial difficulty for some time, and Grant Samuel has been providing advice on capital restructuring.

The listed company's chairman, Alton Jamieson, says Grant Samuel identified Foley Family Wines as a possible merger opportunity, and the company's now well through the due diligence phase.

Mr Jamieson says the merger would be enough to satisfy its banker's requirement for it to raise $5 million by the end of June, as well as reduce debt.