Spring Mountain outlines contemplated key employee retention plan

Chicago, Dec. 21 – Spring Mountain Vineyard Inc. outlined a proposed key employee retention plan that will be the subject of a hearing scheduled for Jan. 18, according to a motion filed in the U.S. Bankruptcy Court for the Northern District of California.

The plan would cover corporate level and managerial non-insider employees.

The debtor identified 15 employees it deems as critical to the successful implementation of the restructuring objectives in the case, including three senior managers, eight sales staff employees and four cellar or administrative staff employees.

The plan proposes a one-time bonus on the sale of the business or the confirmation of a plan of reorganization.

A fund of $150,000 shall be established for that purpose, with distribution determined by the chief restructuring officer.

The debtor asserts that due to future uncertainty and potential new ownership and the stress of transition, many employees have expressed a desire to obtain other employment, which would be disruptive so near the sale of the estate.

The 845-acre Napa Valley vineyard was put into bankruptcy partially because of the pandemic and the damage caused by the Glass Fire.

The Saint Helena, Calif.-based winery filed bankruptcy on Sept. 29 under Chapter 11 case number 22-10381.

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