Papagni Vineyards has filed under Chapter 11.
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Papagni, a Madera, Calif., winery, filed for protection from its creditors in the hopes of securing enough financing to crush the 1986 grape crop. Winery President Angelo Papagni said in a letter to growers that the filing was made partly because Bank of America cut off additional operating credit. The winery will ask a bankruptcy judge in Fresno next Monday to let it use bank and growers’ collateral to finance the 1986 crush, pay growers and the bank in that order from cash-flow proceeds and immediately disburse $1 million to growers.
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