Creditors have voted to accept a deal which will see McWilliam's Wines Group, including the Hunter's illustrious Mount Pleasant winery, sold to an asset management firm.
Prcstnt (pronounced persistent) Asset Management's recapitalisation proposal was accepted by creditors on Friday. The deal will see McWilliam's cease being a family-owned company when the deed of company arrangement is finalised in October this year.
"This is an extremely positive outcome for all involved, especially in the current challenging economic environment," KPMG Australia's restructuring services partner Gayle Dickerson said.
"Not only will unsecured creditors likely receive full repayment of their debts owed, it preserves ongoing employment for all McWilliam's staff and a possible return to existing shareholders."
KPMG were appointed as administrators in January with Ms Dickerson and fellow partners Tim Mableson and Ryan Eagle tasked with finding a good outcome for stakeholders.
McWilliam's continued to trade during administration and produced a 2020 vintage before it was offered for sale.
The deal is valued at around $50 million and will see unsecured creditors receive between 94 to 100 cents in the dollar.
McWilliam's Wines Group CEO David Pitt will continue to lead the business.
"Whilst it has been a challenging journey over the past six months from bushfires to voluntary administration and a pandemic, we are now very excited to have our future confirmed," Mr Pitt said.
"The McWilliam's family for six generations have demonstrated the entrepreneurial spirit required to take on all challenges before them, now myself and the broader team are very much looking forward to working with Prcstnt Asset Management as the new custodians of that legacy to ensure the McWilliam's brand lives on for future generations within Australian wine heritage.
"What is additionally exciting is Prcstnt's focus on the environment and sustainability in everything they do.
"Consumers in general are extremely conscious of their impact on the environment so if we, as a wine producer, can meet this need then we will be well positioned for success into the future."
The acceptance of Prcstnt's deal by creditors was confirmation that the Australian wine industry was "open for business" according to KPMG's Mr Mableson.
"McWilliam's is a historic wine company in Australia with respected brands and strong market positions. Through injection of further capital from Prcstnt," he said.
"McWilliam's will be better placed to scale its business in both domestic and international markets, particularly into Asian markets."
The Hunter Valley Mount Pleasant subsidiary has a cellar door, an 800-tonne-capacity winery and some of Australia's greatest vineyards like the 32.6 hectares on Marrowbone Rd, Pokolbin, and the 31.1 hectares of Lovedale in Wine Country Drive and the 26.9 hectares of Rosehill in Broke Rd.
