Rutherglen's Buller Wines future on the line | PHOTOS

Vines at Buller Wines.
Vines at Buller Wines.
Third generation wine makers Wendy and Andrew Buller preparing for winery walkabout earlier this year.

Third generation wine makers Wendy and Andrew Buller preparing for winery walkabout earlier this year.

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RUTHERGLEN’S Buller Wines may be wound up if creditors accept the recommendation of administrators at a meeting in Melbourne this morning.

Failing developments, administrators Deloitte Touche Tohmatsu will advise creditors they would be best served through winding up the fourth-generation family business, which went into voluntary administration in December.

Administrators said in a report sent to creditors last week contracts had been exchanged with the Judd Group for the sale of the business and its assets for a purchase consideration of $3.9 million, although completion of the sale depended on pending liquor licence transfers.

During the sales process, which began in February, four indicative offers were received.

Three bidders were selected as preferred bidders but two withdrew.

Deloitte Touche Tohmatsu’s report estimated Buller Wines employees, as priority creditors, and secured creditors would receive a likely dividend of 100 cents in the dollar, while unsecured creditors might expect a distribution of 13.7 to 30 cents in the dollar.

Deloitte Touche Tohmatsu confirmed today’s meeting, but declined to speculate on what may happen.

Administrators Salvatore Algeri and Simon Wallace-Smith said they had received unsecured creditor claims totalling $2,605,447, including an Australian Taxation Office claim of $686,740.

The ANZ bank holds a general security interest over all the company’s assets and undertakings, securing a debt of $3.959 million.

An oversupply of grapes and wine, as well as the high Australian dollar, had been blamed for financial problems.

The administrators said other contributing factors included an inability to sell down excessive holdings of bulk wine stock and poor production decisions.

Bullers manager Andrew Buller and De Bortoli Wines managing director Darren De Bortoli.

Bullers manager Andrew Buller and De Bortoli Wines managing director Darren De Bortoli.

100 year old vine at Buller

100 year old vine at Buller

 Daryl Braithwaite at Buller's Rock in the Vines.

Daryl Braithwaite at Buller's Rock in the Vines.

 Diesel at Buller's Rock in the Vines

Diesel at Buller's Rock in the Vines

Ian Moss at Rock in the Vines

Ian Moss at Rock in the Vines

Dick Buller

Dick Buller

Bullers Wines' Monica Neideregger and Susan Pearce with empty bottles from day one of Winery Walkabout alone.

Bullers Wines' Monica Neideregger and Susan Pearce with empty bottles from day one of Winery Walkabout alone.

Dermott Brereton handing out the wine at the Tastes of Rutherglen festival.

Dermott Brereton handing out the wine at the Tastes of Rutherglen festival.

Jimmy Barnes performing at Buller in the Vines

Jimmy Barnes performing at Buller in the Vines

Andrew Buller receives the Wine of the Year award from john Brumby at the inaugural Federation Square Wine Awards.

Andrew Buller receives the Wine of the Year award from john Brumby at the inaugural Federation Square Wine Awards.

Val Buller of Buller Wines

Val Buller of Buller Wines

 Andrew Buller and Stephen Chambers have won overseas awards for their fortified wines.

Andrew Buller and Stephen Chambers have won overseas awards for their fortified wines.

 Andrew Buller and Stephen Chambers won overseas awards for their fortified wines.

Andrew Buller and Stephen Chambers won overseas awards for their fortified wines.

Geelong's Oliva Willingham and Nick Salkeld at Bullers for the Winery Walkabout.

Geelong's Oliva Willingham and Nick Salkeld at Bullers for the Winery Walkabout.

Damien Adams preparing for the Winery Walkabout at at Bullers Winery.

Damien Adams preparing for the Winery Walkabout at at Bullers Winery.

Geelong's Oliva Willingham and Nick Salkeld at Bullers for the Winery Walkabout.

Geelong's Oliva Willingham and Nick Salkeld at Bullers for the Winery Walkabout.

Damien Adams preparing for the Winery Walkabout at at Bullers Winery.

Damien Adams preparing for the Winery Walkabout at at Bullers Winery.

 Stephen Chambers, Colin Campbell and Andrew Buller.

Stephen Chambers, Colin Campbell and Andrew Buller.

Andrew Buller for an article on red wine being exported internationally.

Andrew Buller for an article on red wine being exported internationally.