Danville, Kentucky, October 19, 2025
News Summary
Luca Mariano Distillery in Danville, Kentucky has filed for Chapter 11 bankruptcy protection amid significant financial difficulties, including claims of around $33 million from creditors. The distillery’s largest creditor, SummitBridge, is owed over $25 million. Following the bankruptcy filing, the distillery seeks to extend the deadline for a reorganization plan while facing challenges within the bourbon industry.
Danville, Kentucky – Luca Mariano Distillery filed for Chapter 11 bankruptcy protection on July 17, ahead of a scheduled court appointment that was set to name a receiver for the struggling company. The distillery is facing significant financial challenges, primarily driven by claims totaling around $33 million from various creditors, including its largest creditor, SummitBridge, which is owed over $25 million. Following its bankruptcy filing, the distillery requested an extension to submit a reorganization plan, pushing the deadline from October 15 to November 14, amidst indications of a potential sale.
SummitBridge has contested this extension, arguing that the distillery has been stalling and has failed to participate in meaningful discussions regarding the reorganization of its debts. Judge Paul R. Hage of the U.S. Bankruptcy Court has mandated that LMD Holdings, the holding company for the distillery, must file a comprehensive reorganization plan and detailed disclosure statement regarding its assets and liabilities by October 28.
Although LMD Holdings has declared bankruptcy, the distillery itself remains a separate entity within these proceedings. LMD Holdings is responsible for the real estate on which the distillery operates, which carries an estimated value between $6.5 million and $13 million. However, over 6,000 barrels of bourbon stored on the property are owned by the distillery, complicating the asset picture.
Francesco Viola, the distillery’s founder, recently filed as a creditor in the LMD Holdings bankruptcy case, as the company battles numerous construction-related lawsuits and liens amounting to over $3.8 million. Creditor claims also stretch to contractors such as Doss & Horky and various lenders from Farm Credit, with debts exceeding $6 million collectively. In total, the distillery has faced additional claims from other contractors surpassing $4 million.
The broad economic climate for Kentucky’s bourbon industry, valued at $9 billion, is contributing to these financial difficulties. Many distilleries, including Garrard County Distillery and Whiskey House of Kentucky, have encountered bankruptcy-related challenges, highlighting a troubling trend within the sector. Recent data show a profound slowdown in whiskey production, as changing consumer preferences and an oversaturated market lead to declining domestic demand and a drop in exports.
The bourbon industry has witnessed a staggering increase in production, swelling by 475% from 1999 to 2022, but sales have not kept pace, leading to widespread financial strain on many distilleries across the state. The increases in production combined with a decline in demand have resulted in layoffs, signaling a turbulent phase for bourbon makers in Kentucky.
As the bankruptcy proceedings continue, the future of Luca Mariano Distillery hangs in the balance. Federal court hearings are set for October 28 in Detroit, where arguments regarding the extension request and creditor objections will be presented.
Frequently Asked Questions
What led to Luca Mariano Distillery filing for bankruptcy?
Luca Mariano Distillery faced financial difficulties with total claims against the company amounting to around $33 million, leading to the Chapter 11 bankruptcy filing on July 17.
Who is the largest creditor of Luca Mariano Distillery?
The largest creditor is SummitBridge, which is owed over $25 million by the distillery.
What must LMD Holdings do following its bankruptcy declaration?
LMD Holdings is required to file a confirmable reorganization plan and a disclosure statement detailing all liabilities and assets by October 28.
How has the bourbon industry in Kentucky been affected recently?
The bourbon industry faces a dramatic slowdown in production and sales, coupled with an oversaturated market, significantly impacting distilleries, including Luca Mariano.
Key Features of the Bankruptcy Case
| Feature | Details |
|---|---|
| Bankruptcy Type | Chapter 11 |
| Filing Date | July 17 |
| Largest Creditor | SummitBridge – $25 million |
| Total Claims | $33 million |
| Real Estate Value | $6.5 million – $13 million |
| Next Court Date | October 28 |
Deeper Dive: News & Info About This Topic
HERE Resources
Bankruptcy Judge Dismisses Kentucky Owl’s Debt Resolution Plan
Additional Resources
- Kentucky.com: Bankruptcy Filing
- Wikipedia: Bourbon
- Kentucky.com: Bourbon Industry News
- Google Search: Luca Mariano bankruptcy
- Newsweek: Distilleries in Bankruptcy
- Google Scholar: Kentucky whiskey bankruptcy
- The Street: Whiskey Maker Bankruptcy
- Encyclopedia Britannica: Kentucky whiskey
- NY Post: Whiskey Industry Crisis
- Google News: Kentucky bourbon industry
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