Evans & Tate has said it intends to fight off a fresh attempt from Australian Beverage Distributors (ABD) to wind up the company.

The embattled West Australian wine group has fought ABD for two years against claims that it owes the distribution company A$78,000 (US$58,200) for its short time handling E&T's Cranswick labels.

Last month, a court in New South Wales dismissed ABD's attempts to wind up the company as an abuse of process. However, ABD has lodged an appeal against that decision, prompting E&T's insistence that it will fight the application.

"Evans & Tate will, again, vigorously and strenuously oppose this matter," managing director Martin Johnson said. "Our initial advice is that the appeal is likely to fail and may constitute a further abuse of process."

In its last ruling the court awarded E&T full indemnity costs against ABD. The legal tussle comes at a bad time for the wine producer, which has been hit hard by thewine glut in Australia. The company posted heavy first-half losses in March, sold off one winery and another on the block.

E&T posted a A$44.4m loss for the six months to 31 December, including a A$19.9m write-down across its wineries and distribution company, and another write-down of A$8m on its wine inventories.

Johnson said the company would "pursue all avenues" to retrieve the legal costs in its battle with ABD.