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The big breakdown
Copia, seeking bankruptcy protection, owes about 385 vendor; 76 in Napa Valley
Wednesday, December 03, 2008
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Copia, downtown Napa’s struggling center for wine, food and the arts, has assets worth between $10 million and $50 million and liabilities of $50 million to $100 million, according to documents filed Monday with the U.S. Bankruptcy Court in Santa Rosa.

Seventy-six local businesses and people are among the approximately 385 creditors listed in Copia’s Chapter 11 bankruptcy filing.
The main liability, while not listed in documents filed this week, is the $78 million owed to bankers.

The bankruptcy filing lists the names of all so-called unsecured creditors to which Copia owes money, and it shows dollar amounts for the 20 creditors owed the most.
Winston & Strawn, a law firm with offices in San Francisco, tops the list. Copia owes the firm $250,000.

The non-profit center owes various PR and marketing firms more than $150,000, PG&E $28,364 and Express Personnel $14,810.
Famed San Francisco event planner Stanlee R. Gatti is due $52,974.

A number of newspapers are listed in the court documents, presumably because Copia is behind in paying its advertising bills. The newspapers include the Santa Rosa Press-Democrat, the Vallejo Times Herald and the Sacramento Bee. Copia owes the San Francisco Chronicle $16,261.

(The Napa Valley Register is also listed as a creditor, though documents filed so far do not list a dollar figure.)

Napa-based Liquid Trade Solutions, Inc., a financial firm focused on the wine industry, is due $58,623.

The second largest local creditor is Classic Party Rental of Napa. Copia reportedly owes the firm $19,631.

Representatives from the firms declined comment or could not be reached Tuesday.

The remaining Napa County creditors include wineries, a dry cleaner, artists, florists, a paint store and a welder.

Hoping to get paid

Local graphic designer Jim Gangwer said until recently Copia had paid his invoices every two weeks. “Then they went to paying every 60 days,” he said.

At one point, Copia was four months delinquent in payments, but Gangwer did receive one last check in early November.

Gangwer said he felt Copia was “doing their best” to pay him the remaining $1,500 he is owed.

“They’ve been trying hard to keep up with it,” said Gangwer. “I hope they will pay, but I won’t hold my breath.”

Alonso Corona, Vice President at Greene’s Cleaners, said the bankruptcy filing wasn’t a surprise, “especially due to the delay in payments.” As of early November, the Copia owed the cleaner $1,800.

Greene’s had already taken steps to write off the debt, said Corona.

“We strive to help them as much as possible,” and Copia appreciated of their efforts, he said.

“It’s a great place and we hate to see it close,” said Corona. “I hope this eases the difficulties they are going through.”

Valentin Humer’s business Food and Vine supplies the grapeseed oil for Copia’s main kitchen.

“They were a good account for us for many years,” said Humer. But today, Copia owes Food and Vine more than $3,000.

“We are a small family business,” he said. “Three thousand dollars is a big deal for us. It takes quite a few months to recoup from something like that.”

“We hope we will get paid.”

Copia also filed special motions for the reorganization, including a plea to pay $187,000 in back payroll and other benefits the center owes employees.

The facility also requested that U.S. Bankruptcy Judge Alan Jaroslovsky allow the center to continue to pay utilities such as electricity, water, gas and telephone. Another motion aims to honor customers who prepaid for memberships and classes.

To provide “an immediate infusion of cash to pay critical, ongoing expenses,” Charter Oak Bank has agreed to provide Copia a $2 million line of credit secured by first deed of trust.

As for the $78 million, Bank of New York Mellon is the bond trustee and the California Infrastructure and Redevelopment Bank is the sponsor.

JP MorganChase is the underwriter of Copia’s bonds, and ACA Financial Guaranty Corp. is the bond insurance company.

Neither Copia bankruptcy attorneys or public relations contacts were available for comment on this story.
9 comment(s)

db76 wrote on Dec 3, 2008 8:48 AM:

" From the amount of money that they owe, it shouldn't be a shock to anyone that Copia is closing. The question is, Why were they allowed to stay open so long and run up more debt? "

nwnapan wrote on Dec 3, 2008 9:08 AM:

" The deck chairs are sliding... "

strate8 wrote on Dec 3, 2008 10:02 AM:

" Does anyone think the lawyers feel ashamed of themselves for charging such an enormous price ? Too many lawyers in this country. "

Newview wrote on Dec 3, 2008 11:32 AM:

" This not shocking. It is just obsecuring a more important economic fallout that is occurring all over the country. And most importantly Jennifer Huffman writes an article that takes no journalistic chances. We know that Copia is in debt. So please stop going out pointing at rocks that everyone knows are there. "

calivin wrote on Dec 3, 2008 11:37 AM:

" I feel bad for the employees that weren't in charge of the place (waiters, cooks, front desk staff, etc.). A lot of them haven't yet gotten paid for the last week they worked. For many of those employees, that is creating a very high financial strain, especially with the time it takes to get new jobs in this economy.

It wasn't fair that the people at the top didn't close when they could afford to give these people notice, pay them their due wages, and refund the money of everyone who purchased advanced tickets.

Oh, and if they do reopen (as they say they will), who are their suppliers going to be?! They won't be able to buy even a beef cheek and bottle of wine in this town because they've ruined their relationship with current suppliers, and prospective suppliers have heard the story and won't touch 'em.

Whatever they're growing in those edible gardens, I think the people in charge there have been smoking too much of it. "

jmo wrote on Dec 3, 2008 1:37 PM:

" Newview...exactly what journalistic chances are you speaking of? I sure Jennifer will be back at us as this sad situation unfolds. Right now it is about the facts as they unfold and especially how local businesses are affected.
If you have been to sea, you know a second/third pair of eyes pointing out the rocks works well and is appreciated.

As a side bar, when the final chapter is written on the demise of COPIA founding Director Peggy Loar will bear the brunt of the responsibility for her ineptness and the millions she wasted. "

nativnapan wrote on Dec 3, 2008 2:35 PM:

" doesn't this sound like ??
auto industries, banks, loan co.,
citicorp. what they need to find out is how many dollars $ millions went in to the pockets of upper management before they went bankrupt or new it was coming that should be criminal as we are all finding out we always (taxpayers) get taken through the c%$p and it will come out of our pockets. as it already has from workers and business who belived in thier honesty?? and extended credit to lies im sorry truths sold to them by upper mangement and directors. its the only way most businesses with extend credits is promises from directors or board members who new the outcome would be this. "

Explorer wrote on Dec 3, 2008 4:01 PM:

" I was hired as a consultant in the early days of Copia. In 22 years in business I've rarely seen the level of hubris and incompetence that I saw there.

The board of directors absoutely failed in it responsibility. The executive management team was in way over their heads and there was no accountability. None.

Everybody on the board of directors failed miserably. "

justnana wrote on Dec 3, 2008 7:01 PM:

" My place of employment is also a vendor for Copia. Yes, it was a great account at the beginning and a good account for much of the time. We have mentally kicked ourselves for not cutting off their in-house credit with us earlier, when we really knew things were headed downhill. Good people quit and others were laid off. I have to say that I have heard the same sentiment from others that Explorer has written. Sad. "

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