New owner of Napa Valley’s Spring Mountain Vineyard of ‘Falcon Crest’ fame unveils winery’s future after bankruptcy
The major lender to Spring Mountain Vineyard has acquired the Napa Valley winery made famous by the television show “Falcon Crest” but had gone into bankruptcy reorganization last fall after being damaged in the 2020 Glass Fire.
An affiliate of private-equity firm MGG Investment Group acquired the 845-acre property at 2805 Spring Mountain Road on the western edge of St. Helena on July 3, according to court and county records. Under a court deal approved in April, MGG California LLC made a “credit bid” of $42 million for the winery assets, based on the $202.3 million in secured debt the vintner owed on the property.
A key principal in the winery’s former owner, Jaqui Safra, had until June 28 to come up with an unspecified discounted amount owed on the winery loan before the investment group would take back the property, according to court documents. When the deadline passed without payment, the property changed hands.
Safra, whose other investments include Encyclopedia Brittanica, obtained a $185 million loan secured by the winery in October 2018, The Press Democrat reported shortly after the Sept. 22, 2022, filing for Chapter 11 reorganization. A court filing said the winery company had paid $103.6 million on the loan, but the balance swelled as the interest rate soared to 16%.
MGG Investment Group on Wednesday announced plans for an unspecified “injection of new capital” into the property. The over 200 acres of existing vineyards would be replanted. The winery will seek Napa County approval to plant 70 more acres, renovate the current 22,000 square feet of wine caves with a new underground hospitality center, and construct a new irrigation pond.
Spring Mountain Vineyard has roots that go back to the first cabernet sauvignon vines planted there in 1873. A century later, its chardonnay was a player at the pivotal Judgment of Paris tasting that helped put Napa and Sonoma counties on the global fine wine map.
Hired as the new winery CEO is Peter Eckman. As part of San Rafael-based Jigsaw Advisors, he has orchestrated turnarounds at several North Coast wine businesses such as Napa wine shop Bounty Hunter and Crushpad (now The Wine Foundry).
Napa Valley vineyard consultants Atelier Melka will be directing the planting and replanting.
Before the bankruptcy court filing, Spring Mountain Vineyard was engaged in a federal suit with its insurer, Mt. Hawley Insurance Co., over claims on its $10 million insurance policy related to the Glass Fire. The winery claimed in court filings in that case that it had $35.6 million in damages from that wildfire.
That court in October 2022 put the insurance case on hold pending the outcome of the bankruptcy case.
Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
