As Bodega Norton’s preemptive bankruptcy progresses, A new legal front threatens to add complexity to the company’s financial restructuring process. This is the dismissal process initiated by Michael Halstrickformer CEO of the winery, whose claim could be included in the insolvency and become a creditor.
In recent days, Judge Lucía Sosa ordered that the dismissal process initiated by Halstrick be reviewed as part of the bankruptcy process itself Determine whether your claim should be treated alongside the company’s other debts.
As far as he could tell The Chronicler who agreed to the initial demand for work, The former CEO is demanding a sum of more than $907 millionwhich opens the possibility that, if allowed, Your credit will be included in the competition. The decision does not resolve the labor dispute, but changes the scope of the case and integrates it into the legal process the winery is going through.
The former CEO’s lawsuit
Halstrick was ousted by leader Norton in 2023after more than 30 years at the helm of the company. After his departure, he filed the request for dismissal, which would now be covered by the preventive bankruptcy opened by the judge of Mendoza in early December. The lawsuit arose before the winery resorted to judicial review, but its development was conditioned by that process.
At the same time, termination proceedings were initiated Fernando Merloformer foreign trade manager of the winery, whose claim was also examined.
Beginning of December The Justice of Mendoza has approved the opening of Norton’s preventive bankruptcy proceedings with the goal reorganize a liability of nearly $30 million. The company reached this point after racking up more than 100 bounced checks an amount of more than $1.4 billion. According to central bank records, the warehouse recorded more than 300 bounced checks totaling nearly $4 billion, although some were later canceled.
In the filing, the company itself attributed the financial deterioration primarily to a Process of internal conflicts that intensified after the death of the main shareholder, Gernot Lange’s Swarovskiin 2021.
According to the case, the Disputes over management control, changes in leadership and resulting corporate litigation – including legal action and precautionary measures – ultimately complicated decision-making and complicated crisis management.
At this point In the background there were the difficulties that the wine industry was going through.including: the decline in wine consumption, the rise in costs, the impact of inflation and high interest rates.
How the case continues
Subsequent reviews and observations will extend throughout the rest of the yearwhile the substantive definitions are left for 2027, when the insolvency information hearing is scheduled, in which Norton will have to formalize its payment proposal to creditors.
According to Central Bank records The winery had 108 bounced checks totaling more than $1.44 billion, some of which were later canceled. There are currently 315 rejected checks for $4,038 million. Canceled on Year 22 for $391 million.
At the time, the company said the decision to resort to the judicial umbrella was made after considering various alternatives to address its financial situation. “We reaffirm our commitment to our employees and the wine community and will continue to work together with the same spirit of effort and excellence that has characterized the winery for 130 years,” said the CEO. Thomas Longwho took office last July.
The competition is part of a process of internal restructuring that also included changes in leadership. In July, Norton named Lange as its new CEO, replacing him Rafael Garcíawhich he took over in 2023 after leaving Michael Halstrickhistorical member of the Swarovski family in the country.
The company, founded in 1895 by Edmund James Palmer Norton, has been part of the Austrian Swarovski Group since 1989. It owns more than 1,200 hectares of vineyards in Luján de Cuyo and the Uco Valley, works with more than 140 producers and exports to more than 70 markets.
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