Ray Signorello’s vineyard, which survived the 2017 Atlas Fire, was rebuilt at a cost north of $30 million, a figure that dwarfed the original $10 million loan he secured in 2018. Yet the decade‑long recovery was hampered by permitting delays, a pandemic‑induced slump in restaurant sales, and soaring construction costs that pushed the estate’s debt to $37 million by July 2024.
American AgCredit, the lender and Napa’s fifth‑largest farm‑credit association, raised its interest rate from 4.75% to 12.6% after Signorello missed payments, citing “out of compliance” status. The lender began pressure tactics and outlined a repayment plan that the winery could not meet.
In August, Signorello filed for Chapter 11 bankruptcy one night before the scheduled auction, hoping a debtor‑in‑possession (DIP) financing deal would allow the winery to stay open and attract a buyer. The filing included a stalking‑horse offer from longtime patrons worth $20 million, but American AgCredit rejected the proposal in favor of a direct sale.
The court‑ordered auction, set for Aug. 28 in a plain concrete courtyard beside the Napa County Courthouse, may see the lender emerge as the highest bidder. If the sale proceeds, the estate will be transferred, and the $37 million debt will be settled. Otherwise, the winery could face liquidation and the loss of a family‑owned legacy that dates back to 1984.