Republic National Distributing Co. will be able to complete the sale of its Michigan wine business and related spirits distribution operations, according to reports. A bankruptcy judge in Houston on Oct. 22 removed a key obstacle in a transaction tied to the company’s broader Chapter 11 restructuring.
RNDC Michigan Holdings, a debtor in RNDC’s bankruptcy case, can approve and help carry out a purchase agreement involving the company’s Michigan joint venture. The Michigan joint venture itself is not part of RNDC’s July Chapter 11 protection filing, but the deal still required approval because RNDC Michigan Holdings has an ownership interest that must be authorized for the sale to move forward.
The proposed sale specifies that RNDC Michigan’s wine business would be transferred to Great Lakes Wine & Spirits, Imperial Beverage Company and Vintage Wine Company. Great Lakes Wine & Spirits would also acquire the equity tied to RNDC Michigan’s authorized distribution agent business, a part of the operation connected to spirits distribution in the state. The transaction could close as soon as the end of October, according to court papers. RNDC’s control state operations, including Michigan, had previously been acquired by Martignetti Companies.
