Altamura interested in Copia

Another local developer joins fray, Copia prepares suit against bond insurer

By JENNIFER HUFFMAN
Register Business Writer

Could George Altamura be the next owner of Copia?

“I’m interested,” said Altamura, after attending Copia’s latest bankruptcy hearing in Santa Rosa on Friday.  

Altamura and others were at the U.S. Bankruptcy Court to hear the latest developments in the dissolution of the defunct Napa food, wine and arts center launched by vintner Robert Mondavi in 2001.

Apparently, Altamura has been eyeing Copia for some time. Several months ago, the Napa businessman made an initial offer for the property. Although he declined to name his price, “We’re prepared to buy it if they’re prepared to sell it to us,” Altamura said.

The local developer and owner of several downtown Napa properties wouldn’t elaborate on his plans for Copia if he were to acquire it, only that it would involve “something to benefit us and the community.”

Nor is he alone. A local group led by developers John Salmon and Harry Price is also interested in the property, and the Culinary Institute of America has asked about using at least part of the 12-acre site on the banks of the Napa River.

“It’s a great piece of property,” Altamura said. “It’s got a lot of potential. The building and property are first class,” he said.

Talking and suing

Friday’s court session was called to see if representatives of Copia and bond insurer ACA Financial Guaranty Corporation could make any progress in settling their differences over the future of the site. But a closed-door conference early in the day bore little fruit, and representatives of Copia are preparing a separate lawsuit over a 2007 bond transaction involving ACA if negotiations falter.

In court, Copia attorney Jean Barnier asked for a two-week extension in the bankruptcy case. U.S. Bankruptcy Judge Alan Jaroslovsky agreed to her request.

If the judge gives his OK to Copia’s proposed plan of liquidation, Copia could be for sale for a minimum of $25 million, all cash. 

But ACA objected to Copia’s liquidation plan.

In court documents filed on Thursday, ACA stated that Copia has failed “to discuss or disclose how it will be able to sell the property which is no longer the debtor’s to sell in the first place.” The proposal to sell the property for a minimum of $25 million is “a confusing, convoluted and improper scheme.”

ACA attorney Lou Cisz said the bond insurer has been in communication with the local group the Coalition to Preserve Copia and the CIA about possible reuse plans.

“I think we’ve made some progress” in coming to an agreement that would be best for the community, Cisz said.

Copia representative Joe Fischer said, “We sent a settlement offer to ACA earlier this week. We have not been able to discuss the specifics of our proposal with ACA and are hopeful we can advance a conversation in the coming week that would be the most beneficial for all concerned.”

“We remain committed to doing something that is positive for the community as soon as possible,” Fischer said.

Separately, a claims trader who bought into the Copia bankruptcy case in the hopes of challenging the 2007 Copia bond transferhas abandoned efforts to claim the transfer was fraudulent.

According to bankruptcy court documents, Copia Claims LLC in San Francisco withdrew its offer to pay $1.35 million to litigate the case. Bill McGrane of Copia Claims LLC could not be reached for comment.

Meanwhile, Copia appears ready to take on the fraudulent bond transfer argument previously made by Copia Claims. Copia attorneys have drawn up documents to sue Bank of New York Mellon, ACA and the Infrastructure and Economic Development Bank of Sacramento, asking for the return of $71 million and alleging the original Copia bonds were not paid off correctly from one group of bondholders to another. Copia officials say they hope negotiations will be successful and that they aren't compelled to proceed with th suit

Copia has also withdrawn a motion to sell its inventory of 5,000 bottles of wine to pay for utilities and other bills incurred by the bankrupt center.

“The motion was withdrawn because ACA resumed making payments to preserve the Copia property,” including power, water and insurance, Fischer said.

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