Oyster Bay Marlborough Vineyard warns it’s expecting a loss for the 2010 financial year – and may not be able to meet its banking covenants.

Company directors say they’re seeking a waiver and would make a further announcement when appropriate.

The loss prediction was based on likely harvest volumes and current market prices for grapes, although the harvest hasn’t started yet.

A supply imbalance of some varietals was having a negative impact on grape prices being offered by wineries, according to Oyster Bay.

Oyster Bay's shares last sold at $2, having fallen from above $3 in September 2008.