Shuttered Kentucky distillery faces new deadline to file bankruptcy plan
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- Court orders Luca Mariano Distillery to file Ch. 11 reorganization plan by Oct. 28, 2025.
- SummitBridge, largest creditor owed $25 million, objects to extension and stalled talks.
- LMD owns the real estate valued $6.5–$13M; creditors file roughly $33M in claims.
A shuttered Kentucky distillery must file a plan to come out of bankruptcy by the end of Oct. 28.
Luca Mariano Distillery in Danville, which filed for Chapter 11 bankruptcy 7 protection July 17, just as a Boyle County judge was scheduled to appoint a receiver, was supposed to file a reorganization plan by Oct. 15.
But in late September, parent company LMD Holdings requested an extension to Nov. 14, indicating that a potential sale was in the works.
SummitBridge, an investment company that buys distressed asset debt, is the largest creditor and is owed more than $25 million. SummitBridge objected to that extension, saying that the distillery is just stalling and has not been negotiating with them or other creditors.
Luca Mariano Distillery debts
There are about $33 million in claims, including various lenders and construction liens, according to court documents.
The situation is complicated by the fact that the holding company has declared bankruptcy, but the distillery itself hasn’t. LMD owns the Kentucky real estate where the distillery is located, but more than 6,000 barrels of bourbon in a rickhouse on that property are owned by the distillery, LMD said in a court filing.
Deadline for bankruptcy plan, hearing Oct. 28
According to a statement filed with the court, LMD estimates the real estate is worth between $6.5 million and $13 million.
Now, the bankruptcy judge in Michigan, where distillery founder Francesco Viola lives, has set the new October deadline for LMD Holdings to file a confirmable reorganization plan, as well as a combined disclosure statement of all liabilities and assets.
U.S. Bankruptcy Judge Paul R. Hage is scheduled to hear arguments on the original extension and SummitBridge’s objection at 11 a.m. Oct. 28 in Detroit.
On Oct. 7, Viola filed an appearance in the LMD Holdings bankruptcy as a creditor.
What happened with Danville distillery
Luca Mariano Distillery was supposed to open in the spring, but it was sued by contractors and faced multiple construction-related liens for more than $3.8 million. That case has been hold since the July bankruptcy.
Despite that, Viola went forward with a ribbon cutting ceremony in June, touting SummitBridge as a new “strategic partner” when in fact the company had bought out Truist Bank’s defaulted loans in March and was moving to foreclose.
Viola envisioned creating a “Napa Valley of bourbon” in Central Kentucky.
In a statement to the Herald-Leader in July, Viola said he filed for bankruptcy “to maximize the value of the assets for all stakeholders. Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry, and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.”
Other major creditors of Luca Mariano include: contractors Doss & Horky of Danville, more than $2 million; Farm Credit of Elizabethtown, more than $2 million; Farm Credit Leasing of Louisville, almost $2.2 million; Keystone Industrial, more than $1.2 million; Schardein Mechanical of Louisville, $531,000; Insulation Solutions of Elizabethtown, almost $370,000 and Hayslett Mechanical of Harrodsburg, almost $273,000.
Kentucky bourbon industry, other distilleries in trouble
The financial difficulties come as Kentucky’s $9 billion bourbon industry is facing increased economic pressure from declines in domestic demand as well as slumping exports. This has led to a dramatic slowdown in whiskey production and layoffs in the industry.
Luca Mariano was one of at least three Kentucky distilleries facing claims of unpaid debt. In April, Garrard County Distillery in Lancaster was placed in receivership with $2.2 million in liens and remains shut down; Truist Bank claims Garrard County owes more than $26 million.
Meanwhile, a $1.7 million lien was filed in May against Whiskey House of Kentucky in Elizabethtown over a contract dispute with a builder.
Other whiskey brands, including Uncle Nearest in Shelbyville, Tenn., and Kentucky Owl bourbon, have also landed in financial jeopardy.
Uncle Nearest is now in the hands of receiver after defaulting on more than $100 million in loans to a Kentucky lender.
Kentucky Owl and its parent company, Stoli Group, have been in bankruptcy protection for nearly a year. Earlier this month, a Texas judge scotched a plan to pay off more than $78 million in bank debt by selling barrels of bourbon, saying the plan was “unfeasible” because of the “frozen” whiskey market.
