Operational Update

 

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 
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