A potential deal is on the table for Spring Gate Winery in suburban Harrisburg.
A buyer named Nitin Patel has offered $2.8 million for the winery, whose parent company filed for Chapter 11 bankruptcy protection in May, according to court records.
The offer sets a floor for other potential bidders in a bankruptcy auction slated to unfold this month, pending court approval.
Efforts to reach attorneys for the buyer and the winery have not been successful.
What’s on the table: Patel has offered to pay $2.35 million for the 60-acre winery property in Lower Paxton Township and another $450,000 for vehicles, office furniture, winery and brewery equipment, liquor licenses, and the Spring Gate name, among other things, according to copies of proposed sales agreements filed in U.S. Bankruptcy Court for the Middle District of Pennsylvania.
Patel is operating through two entities, Royal Winery LLC and JNN LLC. Rajan Patel is listed as president of Newtown-based Royal Winery. Efforts to reach him were not successful.
What’s next: If the court approves, competing bids would be due by noon on Oct. 16 to Nik Sgagias of Lemoyne-based real estate firm NAI CIR, according to court records.
If bids surface, an auction would be held Oct. 17, followed by a hearing on the results five days later.
Two creditors — Ally Bank and Horizon Farm Credit — objected to the initial sale plan based on how it treated their claims. But the plan was tweaked in response, and both creditors dropped their objections, according to court records.
The background: Winery parent Schoffstall Farm LLC filed for bankruptcy in May, citing the impact of the Covid-19 pandemic and subsequent inflation on its operations.
The company hopes to clear its debts by selling the winery as a going concern.
The winery hosts numerous events throughout the year and also includes a brewery and spirits business. It was founded more than a decade ago by Harrisburg-area entrepreneur and investor Martin Schoffstall.
