Bankrupt center to pay its workers, with little left for others, including vendors
Officials for Copia, Napa’s bankrupt center for wine, food and the arts, told a U.S. bankruptcy court trustee at a meeting on Friday that they plan to pay all employees back wages, but will have little left over for other creditors owed money when the center shut its doors in November.
In a windowless meeting room in Santa Rosa, creditors were given the chance to question former Copia chief financial officer, and now president, Joe Fischer about money the bankrupt facility owes them.
Only two of the estimated 367 unsecured creditors were present, and they quickly learned the news was not good.
Kim Chapman said Copia owes her business, Coyote Marketing, approximately $2,000. Chapman said she was a new Copia vendor, supplying the gift shop with imprinted aprons, wine journals and aprons. Copia never paid any of her invoices.
“I got stiffed,” she said.
Chapman said if she couldn’t be paid, “I’d rather have my merchandise back to so they don’t sell it to pay other people’s bills.”
Pat Cutler, assistant U.S. Trustee for the Bankruptcy Court of the Northern District of California, told her the merchandise would have to stay at Copia.
“That’s unfortunate for me,” Chapman said. “I never thought for a moment that Copia was unstable. You hear ‘Mondavi’ and you think there’s a wealth of money there. I’m so glad I didn’t get in deeper than I did.”
Copia owes the nonprofit Napa Valley Music Associates more than $250 from the proceeds of an October 26 concert, said organizers Marcia and Paul Battat.
“It’s very disappointing,” said Marcia Battat.
Raising his right hand in an oath to tell the truth, Fischer was also questioned by Cutler about the progress of the Chapter 11 filing.
Fischer said Copia’s unsecured creditors will likely receive only 5 to 10 percent of what they’re owed.
Besides paying pennies on the dollar to unsecured creditors, “At this point we are close to filing a consensual Chapter 11,” said Copia attorney Jean Barnier. That agreement would mean Copia employees could be paid for back wages and vacation in full. It’s not clear when and how payments would be made.
Fischer said he was not being compensated for his work at Copia at the moment. “I’m committed to doing what we need to do during the dissolution,” he said to Cutler.
Fischer is among those owed back wages by Copia.
Citing massive debt, a downturned economy and lagging donations, Copia filed for Chapter 11 bankruptcy protection in December 2008.
Fischer had no comment after the meeting.
After closing abruptly in late November, Copia changed the locks on the building, Fischer said. A private security firm now watches over the facility, he said, while a small number of employees work inside on inventory and wind-down operations.
Posted in Local on Saturday, January 17, 2009 12:00 am Updated: 1:10 pm.
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