Gaucho Group Holdings, Inc. Announces Settlement Term Sheet and Plan for Structured Exit from Chapter 11
Rhea-AI Summary
Gaucho Group Holdings (OTC:VINOQ) has announced a settlement agreement with the 3i Parties to resolve ongoing litigation and facilitate its exit from Chapter 11 bankruptcy proceedings. The settlement involves:
- A $5.5 million cash payment to be made over 12 months
- Cancellation of Securities Contracts
- Dismissal of Delaware Litigation
- Structured dismissal of Chapter 11 Reorganization
The settlement will be secured by the company's rights and interests in the Algodon Mansion and its associated intellectual property. As part of the agreement, the parties will enter into a hotel management agreement for the Algodon Mansion. The settlement term sheet requires approval from the Chapter 11 Bankruptcy Court.
Positive
- Settlement agreement provides clear path to exit Chapter 11 bankruptcy
- Structured payment plan of $5.5M over 12 months instead of immediate payment
- Company retains Algodon Mansion through management agreement
Negative
- $5.5M settlement payment obligation adds significant financial burden
- Company must pledge Algodon Mansion assets as security for settlement
- Potential loss of control over Algodon Mansion if payment terms not met
Agreement Provides for Structured Settlement and Dismissal of Litigation
MIAMI, FL / ACCESS Newswire / March 18, 2025 / Gaucho Group Holdings, Inc. (OTC:VINOQ), a company that includes a growing collection of e-commerce platforms with a concentration on fine wines, luxury real estate, and leather goods and accessories (the "Company" or "Gaucho Holdings"), today announced that it has entered into a settlement term sheet with 3i, LP, 3i Management LLC, and Maier Joshua Tarlow (the "3i Parties") to resolve outstanding litigation and facilitate a structured dismissal of the Company's Chapter 11 reorganization proceedings, subject to approval by the Chapter 11 Bankruptcy Court.
As previously reported on the Company's Current Report on Form 8-K filed on February 20, 2024, Gaucho Holdings commenced an action in the United States District Court for the District of Delaware on February 16, 2024, through the filing of a complaint against the 3i Parties. The litigation pertained to that certain Securities Purchase Agreement, promissory note, and ancillary agreements (the "Securities Contracts") entered into between the Company and the 3i Parties (the "Delaware Litigation").
Additionally, as disclosed in the Company's Current Report on Form 8-K filed on November 12, 2024, the Company filed a voluntary petition (the "Chapter 11 Reorganization") in the United States Bankruptcy Court for the Southern District of Florida (the "Bankruptcy Court"), seeking relief under Chapter 11 of Title 11 of the United States Code.
On March 12, 2025, Gaucho Holdings and the 3i Parties (collectively, the "Parties") entered into a settlement term sheet under which, in exchange for the cancellation of the Securities Contracts, dismissal of the Delaware Litigation and related litigation, and a structured dismissal of the Chapter 11 Reorganization, the Company has agreed to make a cash settlement payment of
The settlement term sheet is subject to review and approval by the Chapter 11 Bankruptcy Court. The Company will provide updates as appropriate in accordance with its disclosure obligations.
About Gaucho Group Holdings, Inc.
For more than ten years, Gaucho Group Holdings, Inc.'s (gauchoholdings.com) mission has been to source and develop opportunities in Argentina's undervalued luxury real estate and consumer marketplace. Our company has positioned itself to take advantage of the continued and fast growth of global e-commerce across multiple market sectors, with the goal of becoming a leader in diversified luxury goods and experiences in sought after lifestyle industries and retail landscapes. With a concentration on fine wines (algodonfinewines.com & algodonwines.com.ar), hospitality (algodonhotels.com), and luxury real estate (algodonwineestates.com) associated with our proprietary Algodon brand, as well as the leather goods, ready-to-wear and accessories of the fashion brand Gaucho - Buenos Aires® (gaucho.com), these are the luxury brands in which Argentina finds its contemporary expression.
Cautionary Note Regarding Forward-Looking Statements
The information discussed in this press release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein concerning, among other things, changes to exchange rates and their impact on the Company, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and are not (and should not be considered to be) guarantees of future performance. Refer to our risk factors set forth in our reports filed on Edgar. The Company disclaims any obligation to update any forward-looking statement made here.
Media Relations:
Gaucho Group Holdings, Inc.
Rick Stear
Director of Marketing
212.739.7669
rstear@gauchoholdings.com
SOURCE: Gaucho Group Holdings, Inc.
View the original press release on ACCESS Newswire
FAQ
What are the key terms of VINOQ's settlement agreement with 3i Parties?
How will VINOQ pay the settlement amount to 3i Parties?
What happens to VINOQ's Chapter 11 bankruptcy after this settlement?
What assets is VINOQ using to secure the settlement payment?
