<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0TdN6y_0vklWmGX00" alt="https://img.particlenews.com/image.php?url=0TdN6y_0vklWmGX00" width="500" height="215" ></figure>The bankruptcy sale of Spring Gate Winery is facing some headwinds.In legal filings this month, two lenders came out against the reorganization plan filed by the Harrisburg-area winery’s parent company, Schoffstall Farm LLC.At issue is the distribution of the proceeds from a sale of the winery, should a buyer be found.One lender, Horizon Farm Credit, is objecting to language saying it would be paid “up to” the full amount of its claim, which is about $2 million, according to filings in U.S. Bankruptcy Court for the Middle District of Pennsylvania.Horizon argues it is entitled to payment in full.The other lender, Detroit-based Ally Bank, makes a similar argument but with a twist.Ally loaned money for the purchase of two Nissan cargo vans and does not want the vehicles — on which it holds liens — included in the proposed sale. Schoffstall Farm owes Ally about $14,800, according to court filings.A spokesperson for Mechanicsburg-based Horizon declined to comment. Efforts to reach Ally and an attorney for Schoffstall Farm were not successful.Why is this happening: Schoffstall Farm filed a reorganization plan with the federal bankruptcy court in August.The plan calls for a sale of the winery’s assets within a year of the plan’s confirmation and outlines processes for repaying creditors.Located in Lower Paxton Township, Dauphin County, the winery is currently listed for sale at a price of $4.9 million by Lemoyne-based real estate firm NAI CIR.Both the sale and the reorganization plan are subject to court approval.Other creditors have voted in favor of the reorganization plan, while others have not yet weighed in, according to a Sept. 20 court filing.The latter include Lancaster-based Fulton Bank, which is owed about $800,000, and the U.S. Small Business Administration, which is owned about $950,000.A hearing on the reorganization plan is currently scheduled for Oct. 1.The background: Spring Gate was founded by Harrisburg-area entrepreneur and investor Martin Schoffstall.The winery grew to include a brewery, spirits business and event business.But it suffered from a loss of revenue during the Covid-19 pandemic and never fully recovered, according to court filings.Schoffstall Farm filed for chapter 11 bankruptcy protection in May.The winery is continuing to operate during the bankruptcy case.</div></body>

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Lenders balk at bankrupt winery’s reorganization plan

The bankruptcy sale of Spring Gate Winery is facing some headwinds. In legal filings this month, two lenders came out against the reorganization plan filed by the Harrisburg-area winery’s parent company, Schoffstall Farm LLC. At issue is the distribution of the proceeds from a sale of the winery, should...