Massive haul of seized Bordeaux auctioned

Over 260,000 bottles of classed growth Bordeaux believed to be part of a giant collection seized from a Chinese speculator are to be auctioned off tomorrow (23 June).

The 264,000 bottles of everything from first growths to flying fifths and some top Right Bank names will be sold by a judicial auctioneer in Bordeaux to cover the remaining costs of an enormous cancelled order believed to be related to the infamous Yu Kelong.

Spanning the years 2008-1995 but largely concentrated around the 2006, 2007 and 2008 vintages, the collection features around 20,000 half and full dozen cases of Angelus, Cheval Blanc, Lafite, Lascombes, Léoville Las Cases, Cos d’Estournel, Haut-Brion, Rauzan-Ségla, Pontet Canet and Pichon Baron among others as well as six cases of Guigal’s “La Las” and some rare and fine Armagnac.

Numbers involved at the sale are extraordinary and included 40 12-bottle cases of Angelus, hundreds of cases of 2006 Chevalier Lascombes and 2001 Gruaud Larose, as well as many hundreds of bottles of Château Margaux and hundreds more of Pichon Baron and other classed growths.

All of the wine was either bought en primeur or from La Place and then stored at the Valade bonded warehouse outside Bordeaux in the commune of Bruges.

Although yet to be fully confirmed, the wine appears to be a vast haul seized at the warehouse after a Chinese client-speculator (Kelong) cancelled a huge order of 2010 en primeur totalling some US$8 million from a Bordeaux négociant known as Ipso Facto in 2011. In total, Kelong and Ipso Facto had agreed deals of around €17m.

Many wines were delivered to Kelong’s company USA Piilii Jepen International but only a fraction of the required payment was ever received by Ipso Facto.

Because of a contract Piilii, had signed with Ipso Facto, when Piilii suddenly demanded a cancellation of the orders in 2011, Ipso Facto’s director, Philippe Papillon, moved to seize the many thousands of bottles stored by Piilii at the bonded warehouse in Bruges as collateral.

Despite entreaties, Kelong refused to fulfill his payments and the seized wine is thus being sold to cover the remaining costs.

The sale is expected to realise some €11 million. Participation at the auction appears to be limited, with négociants, those châteaux with wines in the sale and those who have specially registered for the sale being involved.

Likewise, bids can only be made in person or on the phone.

Many of the details of the case can be found in Suzanne Mustacich’s recent book, Thirsty Dragon.

The full list of wines being sold can be seen here.

NB. Originally this article incorrectly stated the wines were stored at a warehouse in Bruges, Belgium.