The estate includes the 1885 Victorian House, Miraville, made famous in the television series Falcon Crest, other historic buildings and about 200 acres of vineyards. The sale would satisfy and $200 million debt owed to MGG California LLC, the primary secured lender. The sale was tentati vely approved by the bankruptcy judge.
The winery filed for bankruptcy act protection after defaulting on a $185 million loan from MGG California LLC. Spring Mountain and its owner, Swiss billionaire Jacob Safra are reported to have paid MGG about $105 million. However, because the loan has a post-default interest rate exceeding 16%, the winery now owes MGG $205 million.
The winery was heavily damaged by the Glass Fire, which caused more than $35 million in damage. While the irrigation system was completely destroyed, Miraville and Chauteau Chevalier, another 19th Century house on the 847-acre property, were untouched.
Jacob Safra is the son of the late Brazilian banking tycoon, Joseph Safra. Jacob is responsible for the Swiss bank J. Safra Sarasin, Safra National Bank of New York and the family's U.S. real estate, which includes more than 200 commercial, residential, retail and farmland properties worldwide, including New York's 660 Madison Ave. office complex.