Operational Update
April 09 2009 - 2:00AM
UK Regulatory
TIDMMCOZ
RNS Number : 3865Q
Cosentino Signature Wines plc
09 April 2009
9 April 2009
Cosentino Signature Wines plc
Operational Update
Cosentino Signature Wines plc ("Cosentino" or the "Company"), the AIM listed,
ultra-premium brand Napa Valley based wine company, would like to update the
market on recent developments in the business.
As previously reported, the Company vacated three non-essential properties at
the Pope Valley, Lockeford and Clements locations and has consolidated its
operations into purpose built facilities in Woodbridge and its fully owned
operations in Yountville, Napa Valley. Since the move, the tasting room at the
new facility has opened and the new bottling line is expected to become
operational shortly. Both of these new operations are anticipated to be cashflow
positive to the Company in the near term.
Whilst the Company's tasting rooms continue to be busy, the core wholesale
business has not yet improved as expected. However, since the Board considers
that many of its key wholesale customers will be low on inventory, the Board
believes that the wholesale operations should pick up in April and May.
Cosentino continues its discussions with its senior debt providers regarding the
refinancing of the existing US$18m debt. However, the current lenders have
indicated that they are unlikely to be in a position to meet the Company's
aspirations in this regard. The Company has defaulted in making its most recent
interest payments under the terms of the loans; however the lenders have
remained supportive of the Company and the Board's efforts to obtain alternative
financing.
In this regard, the Company has commenced discussions with several other
interested parties with a view to one or more of them refinancing the existing
debt and providing new working capital facilities, including any funds required
to compensate the lessors of the vacated properties.
The Company will update the market as appropriate, once negotiations have been
finalised.
- Ends -
For further information please contact:
Cosentino Signature Wines plc
Larry Soldinger, Chairman - c/o Financial Dynamics 020 7831 3113
Seymour Pierce
Jonathan Wright - 020 7107 8000
Financial Dynamics
Jonathon Brill / Billy Clegg / Ed Westropp - 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
END
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