Yesterday (24 July) just-drinks ran a story saying that the assets of Legacy Estate have been purchased by a joint venture between a founder partner of the Texas Pacific Group, Bill Price, and the Huneeus family.

The joint venture has, in fact, merely made an offer to buy Legacy’s assets, and has not actually completed the purchase. We would like to clarify that The Legacy Estate Group has not been sold, but that it is merely moving forward with the Chapter 11 reorganisation process.

We are happy to set the record straight and we apologise for any confusion our initial report may have caused. A correct version of the story follows.

A joint venture between a founder partner of the Texas Pacific Group and the Huneeus family has made an offer to buy Legacy Estate’s assets out of bankruptcy protection.

Legacy is reportedly seeking bankruptcy court approval to sell its assets for US$90m. The company - along with owner Connaught Capital Partners - filed for Chapter 11 bankruptcy protection last November after defaulting on loans associated with its acquisition of the Arrowood and Byron wineries from Constellation Brands last year.

As well as the Arrowood winery in Sonoma and the Byron winery in Santa Maria, Legacy also owns the Freemark Abbey winery in Napa Valley.

As part of the bid from Bill Price and the Huneeus family, Richard Arrowood, founder of his namesake winery, has pledged to stay at Arrowood. “Without question, the Huneeus family and Bill Price understand why we are in this business,” Arrowood said yesterday (24 July). “They understand the care and nurturing it takes to build upon the natural synergies between our employees, growers and consumers.”

Price is a founding partner of the Texas Pacific Group, while the Huneeus Family already owns privately-held wine company Huneeus Vintners in Napa, California and other vineyard and winery properties in California and Chile.

A report from Dow Jones last week noted that investment vehicle FAB Acquisition Co. was acting as the lead bidder for the assets that Legacy wants to sell.