Mahana Estate winery assets snapped up after receivership

The assets of Mahana Estate have been sold after the company went into receivership last year. Photo/Supplied.

Wellington-based financial services firm Booster and Nelson's Seifried Estate have bought most of the assets of winery and tourism business Mahana Estate, which went into receivership last year.

The sale price was not disclosed.

Mahana was placed in receivership last September when a previous sale fell through and a stoush between shareholders spiraled into litigation.

The Herald reported at the time angry scenes between Mahana director Glenn Schaeffer and two Las Vegas businessmen and casino owners, James Murren and Daniel Lee. This turned into a lengthy court battle which resulted in Schaeffer being ordered to pay US$2.3 million.

Booster has also bought Mahana Estate's Upper Moutere 2,589 square metre four-level winery, which is capable of crushing 600 tonnes of grapes annually and is sustained by its own on-site cellaring facility and bottling plant, estate agent Bayleys said in a statement.

The 21-hectare vineyard planted in pinot noir, pinot gris, Riesling and chardonnay.

The acquisition includes Mahana's cellar door tasting room and retail outlet, which also operates as restaurant.

Seifried Estate, which is run by members of the Seifried family, bought Mahana's nine-hectare sauvignon blanc vineyard in the nearby region of Hope, south of Nelson.

A lodge featuring three residences capable of accommodating 14 guests at a time within the Mahana winery estate is still being marketed for sale.

The two winery asset sales were brokered by viticulture and winery specialist Mike Poff of Bayleys Marlborough.

The property went on sale after after it was tipped into receivership in September after struggling for three years with a lawsuit brought by Las Vegas casino moguls against its sole director and majority shareholder, Glenn Schaeffer.

"It has been particularly encouraging to see the Mahana Estates' assets bought back into New Zealand domiciled ownership from their previous North American proprietor structure," Poff said.

Bayleys was in talks with a number of commercial accommodation providers who had previously expressed interest in solely acquiring Mahana's lodge assets.

"It has been a delicate process managing the sell-down of the various Mahana real estate and business assets in a strategic programme delivering the best possible returns for the receiver Korda Mentha and the various creditors. But there is one more piece of the jigsaw to go," he said.

Receivers last year said the business owed about $20 million to a related company that developed the vineyard and winery.

Rabobank was also owed $3.2m, the receivers from KordaMentha said. Trade creditors are owed a further $223,000 and employees are claiming $41,696.

Booster last year invested into the operations of Awatere River, Waimea Estates, Bannock Brae and Sileni Estates.