Napa Valley winery, Spring Mountain Vineyard, made famous by ‘Falcon Crest’ files for bankruptcy

Spring Mountain Vineyard in St. Helena filed for bankruptcy last month as the winery that suffered damages in the 2020 Glass Fire claimed debts from $100 million to $500 million, according to court records.

The winery controlled by Jaqui Safra, who also owns Encyclopaedia Britannica Inc., has 850 acres of property and employs 70 workers. It is best known for serving as the backdrop for the “Falcon Crest” TV series that ran 1981-1990 on CBS.

Court documents show the winery has been unable to come to agreement with its lender MMG, which provided Spring Mountain a $185 million loan in October 2018.

In subsequent years, the two parties have had to amend the loan and also enter into a forbearance agreement. They had ultimately agreed to retain a broker to sell the property by a certain date, according to a court filing in the bankruptcy case.

Safra contends in the bankruptcy filings that his company has paid $103.6 million of the loan, but because of a current interest rate of 16%, MMG is now owed about $205 million.

The winery also is engaged in another federal suit with its insurer Mt. Hawley Insurance Co. over a $10 million insurance policy from claims from the Glass Fire. Spring Mountain said it had suffered more than $35 million in damages as a result of the blaze, according to a court filing in that separate case.