Attorney Says TMI Investors Approve Proposed Winery Sale

A lawyer for beleaguered Teachers Management & Investment Corp. said Thursday that TMI investors who bought the Parducci Wine Cellars 23 years ago have approved its sale for $19.2 million.

More than half the teachers who invested in the Mendocino County winery have voted in favor of the sale to Domain Hill & Mayes in Napa, said the lawyer, David C. Grant of Irvine. Investors would get about $13.5 million, he said.

The transaction is subject to a host of contingencies, including provisions that Hill & Mayes obtain financing by June 10 and close the deal by July 1.

“I’m pleased,” Grant said. “I hope it closes.”

Investors in TMI partnerships, who have sued TMI, also hope the deal goes through, said their lawyer, Ronald Rus of Irvine. He said that the Parducci partnership has received a similar offer from another company that doesn’t need financing. He didn’t identify the backup buyer.

TMI, which put retirement funds of 20,000 educators statewide into real estate limited partnerships, was sued nearly two years ago by teachers who accused operators Maurice B. Shuman and James R. Martin of diverting funds for their own use, causing more than $100 million in losses.

Shuman and Martin assert that the recession eroded property values, which inhibited sales, and that taxes and other costs for maintenance of the properties caused most of the losses. The lawsuit is pending.

Last week, the Parducci limited partners voted on whether to oust TMI as general partner of the winery and deny it more than $750,000 as a fee for finding a buyer. Results of that vote are still being tabulated by the accounting firm of Price Waterhouse LLP.