Signorello Estate Sold at Auction to its Creditor

Signorello Estate, the Napa Winery that was burned to the ground by the 2017 Atlas Fire, rebuilt and then went into foreclosure, another victim of the changing wine market, was sold to American Ag Credit, its creditor.

American AgCredit is a borrower-owned cooperative that finances agricultural businesses. It was the only bidder and took ownership through a credit bid, which put the debt toward the purchase price.

The property sold on the courthouse steps for about $22.3 million, but American AgCredit was owed roughly $37 million in total debt and related construction costs.

The sale wipes out the property's debt, and under California's anti-deficiency laws, a lender cannot pursue a borrower for a personal judgment for the deficit. But if personal or corporate guarantees were provided, American AgCredit could legally pursue those guarantors in a separate lawsuit for the $14.7 million difference