Fourteen parties expressed their interest but Deloitte Partner Gary Doran, who along with Neil Cussen and John Greig are the appointed Voluntary Administrator for the Palandri Wine Group, said that the sale was the best outcome for Palandri creditors.

“Global Wine Holdings bid was selected because it provided the highest return to secured creditors, pays outstanding employee entitlements, contributes cash and other assets by way of a proposal for a Deed of Company Arrangement for the benefit of unsecured creditors, funds the maintenance to the vineyards for 12 months and provides a potential exit for the growers,” Mr Doran said.

“In addition most of Vintage 08 has been sold to Global Wine Holdings which will result in funds being available for distribution to some of the investors.

“Just as important the transaction results in substantial continuation of business, which will mean ongoing employment and other business opportunities for the Margaret River region.”

Entrepreneur Mr Xibo Ma who controls the newly formed Global Wine Holdings was the second largest shareholder of Palandri Ltd and has a considerable amount of industry interest in China.

The position of Chairman for Global Wine Holdings will be filled by Mr Ma who has invited former Palandri directors Darrel Jarvis and Chris Brown to become the non-executive directors.

For managing the company an independent Chief Executive Officer will be appointed.

So that Mr Ma could maximise the return all stakeholders and guarantee Mr Jarvis’ financial and personal commitment, the Administrators negotiated a settlement with Mr Jarvis.

The settlement includes a $1 million contribution and the assignment of any interests he has in the Management Investment Schemes for a potential Deed of Company Arrangement for the benefit of creditors.

Mr Javis will also be forgoing his secured creditors claim of more than $2 million.

As part of Global Wine Holdings proposal for a Deed of Company Arrangement, Mr Doran advised that the Administers have negotiated the release of $3.7 million in both secured and unsecured claims against the Palandri Wine Group via parties associated with the former directors.

The Administrators have until the next creditors meeting, which is scheduled for the end of May, to provide a detailed report regarding Palandri Wine Group’s financial affairs and to analyse the returns available with the proposed Deed of Company Arrangement in comparison to Palandri companies going into liquidation.