Prince Charles, Prince of Wales and Camilla, Duchess of Cornwall are shown around Mahana Winery with owners Glenn Schaeffer and Chandler Parker on November 7, 2015. Photo / File
Prince Charles, Prince of Wales and Camilla, Duchess of Cornwall are shown around Mahana Winery with owners Glenn Schaeffer and Chandler Parker on November 7, 2015. Photo / File
The troubled Mahana Estates Winery in Nelson has been put on the market, with Bayleys' viticulture specialist Mike Poff pushing that it has had more than $20m spent on infrastructure and improvements.
The vineyard was tipped into receivership in September after struggling for three years with a lawsuit brought byto Las Vegas casino moguls against its sole director and majority shareholder, Glenn Schaeffer.
Schaeffer's lawyer, Rick Farr, told the Herald that the impact of the legal action on the business was such "that it became impossible and impractical to continue".
Poff is acting under direct instructions from the receivers (Korda Mentha's Brendon Gibson and Natalie Burrett), with a sale by tender closing on December 12.
The receivers are selling a 21-hectare vineyard planted in pinot noir, pinot gris, riesling and chardonnay; a 1589 square metre winery, a cellar door tasting room and retail outlet designed as an a-la-carte restaurant and a commercial grade event venue.
Two other real estate assets involved with Mahana's operations are being sold by its owners, with tenders also closing on December 12. These assets include a nine-hectare sauvignon blanc vineyard in the nearby region of Hope and an upmarket lodge featuring three residences capable of accommodating 14 guests at a time.
For the past three years, Schaeffer has been battling a High Court lawsuit brought against him by James Murren and Daniel Lee.
Murren is chief executive of MGM Resorts International, a multi-billion dollar Las Vegas hospitality business, while Lee is also the boss of a casino company in the same city.
Mahana's assets include a nine-hectare sauvignon blanc vineyard. Photo / Supplied
Shortly before the receivership, Schaeffer attempted failed in a bid to have the case thrown out. He said Murren and Lee had threatened to bury him in the desert, destroy his childrens' lives and kill his three show dogs unless he returned his money (the pair denied the claim).
But Justice Stephen Kos said Schaeffer's concerns were " somewhat hyperactive".
If Schaeffer was to "run into trouble" in the desert, police would have a strong line of inquiry to follow, Justice Kos said.
In court documents, Murren and Lee said they and others discussed forming a partnership with Schaeffer that would own a vineyard and winery.
After a 2008 approach from Schaeffer, Murren says he and his trust have personally paid Schaeffer US$1.6 million while Lee says he paid US$700,406. The pair allege false representations were made to them that they would be part owners of the vineyard.
Their long-running High Court case wrapped up on November 7, but it could be the New Year before a verdict is delivered.
