Kentucky Bourbon Distillery Seeks Sale Amid $34.5M Bankruptcy Just Months After Construction
The Kentucky bourbon distillery, which completed construction just months ago, is now up for sale after a federal bankruptcy judge approved the process to address more than $34.5 million in outstanding debt. Lexington Herald-Leader It was reported on Thursday.
Luca Mariano Distillery The offer in Danville will be made available to bidders upon an order from U.S. Bankruptcy Judge Paul R. Hage on Wednesday. The sale followed negotiations with local businesses and lenders who held mortgages tied to the construction and financing of the project. Depending on final terms, the sale could include the distillery itself, the underlying real estate and more than 6,000 barrels of bourbon currently aging in a warehouse on the site.
The distillery’s parent company filed for bankruptcy protection shortly before a July 2025 hearing in Boyle County court that could force a public auction to cover outstanding construction debts. Luca Mariano Distillery and LMD Holdings later joined the bankruptcy case in November. Court records show the company owes more than $34.5 million in total, with most of that debt owed to SummitBridge, which received the original loans from Truist Bank.
Various Kentucky contractors and agricultural lenders are also among the largest creditors. They include Danville-based construction company Doss & Horky, which owes more than $2 million, and Farm Credit of Elizabethtown and Farm Credit Leasing of Louisville, which each owe more than $2 million. Other claims come from Keystone Industrial, Schardein Mechanical, Insulation Solutions and Hayslett Mechanical, according to the Lexington Herald-Leader.
According to the calendar approved by the court, offers must be submitted by February 27. Borrowers have the authority to advertise the sale in a national publication such as The Wall Street Journal to reach potential buyers outside Kentucky. If the private sale does not proceed, the court also approved potentially auctioning the assets in early March. Any proposed sale would require final approval at a March 10 hearing in U.S. Bankruptcy Court in Detroit.
Luca Mariano Distillery was founded by Francesco Viola, who said last summer that he planned to reopen after the company filed for bankruptcy. The brand entered the market with sourced whiskey and plans to begin distilling its own bourbon in 2025 after completing its Danville facility. Construction was completed last summer, but the company ran out of capital before full production could begin.
In July, Viola said it filed for bankruptcy “in order to maximize the value of assets for all stakeholders,” according to the Herald-Leader. Luca Mariano Distillery and LMD Holdings have a successful business model, have overcome previous economic challenges in our industry and are poised to emerge successfully, ideally with the support of their employees, customers, society and creditors.”
