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Troubled winery may pay growersBy BOB COXCalifornian staff writerTwo dozen grape growers who sold their crop to Bella Rosa Winery in 1984 may see some money soon.A compromise plan agreed to Friday calls for Bella Rosa to pay growers 80 percent of the amount they claim they are owed.Bankruptcy Court Judge Eckhart A. Thompson approved the compromise after the lawyers worked out a plan that would allow Bella Rosa’s principal creditor,' Eureka Federal Savings and lxan, to challenge payments it considers improper.Fresno attorney Riley Walter, who represents the Delano winery, said two dozen growers would be paid about $1 million.The Delano winery is operating under the protectionof Chapter 11 of federal bankruptcy law while attempting to reorganize its affairs.Walter said that while Bella Rosa disputed the validity of the growers’ claims, it wished to compromise the matter and would agree to pay 80 percent of the amounts claimed. We want to pay the growers so they can farm in 1986.”But an attorney for Eureka, the San Mateo-based financial institution which has loaned $8 million to Bella Rosa, objected to the plan. Peter Munoz asked Thompson to delay approving the payments because they might jeopardize the successful reorganization of Bella Rosa and repayment of the debts owed Eureka.In addition, Munoz argued no proof had been submitted to validate the growers’ claims.Munoz noted that Eureka itself was on shaky financial ground because of numerous bad loans and had been taken over by the Federal Savings and Loan Insurance Corp. He added that Bella Rosa is one of Eureka's largest debtors. “If we were made an offer of 80 percent we would be happy (to settle).”Attorneys for several growers argued their clients needed money now in order to prevent their vineyards from being foreclosed on.Thompson sympathized with the growers’ plight, saying they “need the money desperately,” and indicated he would rule against Eureka and allow the payments.Munoz, Walter and attorneys for the growers then worked out a plan that calls for the growers to document their claims before they can be paid. Eureka would beTurn to BELLA ROSA / C2
Newspaper Details
Bakersfield Californian
Bakersfield, California, US
Sat, Apr 19, 1986
Page 15
Full Page
Clipped by
Kimberly S.
USA 05 Jun 2025
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