The latest report from the liquidators is now in and the news is not good. (A PDF copy of the Circular to Creditors can be found here.)

The magnitude of the deficit is stunning. They have completed the stocktake and determined a net wine bottle shortfall of 314,846 bottles. Investors who have suffered a loss of wine will be classed as unsecured creditors. The stocktake found approximately 55,000 bottles that werr owned by the company and investors. According to the Circular, these bottles:
• Bottles purchased by the company for possible retail sales;
• Bottles purchased by the company for promotional purposes;
• Bottles held in excess of investor claims; and
• The sum total of ‘fractional’ bottles that could not be assigned to individual investors.

The  liquidator has also "ceased" 120,000 bottles of wine where the investors didn't pay the store fees and associated charges! These bottles are subject to the liquidators lien and shall used against debts due to the Receiver and Manager etc.

The liquidator reported on progress on the sale of some of the wine stocks. Substantial efforts to move 55,000 bottles in one block has failed to eventuate as the offers received have been to low.   As a result, it has been decided to use a two pronged approach. Firstly, Grays Online will be used to auction the wine on a label by label basis. Secondly, it will be offered to retailers that are prepared to take four palates of each label at or about the auction value.

The Liquidator is also looking into certain aspects in relation to dealings by both the company and its directors. So if the people that ran the company thought they are home free, that may not be the case, and it is possible they may still be held both financially and legally accountable.