A Kentucky bourbon distillery that was completed just months ago is up for sale after a federal bankruptcy judge approved the process to resolve more than $34.5 million in outstanding debt, the Lexington Herald-Leader reported Thursday.
Luca Mariano Distillery in Danville will be made available to bidders under an order issued Wednesday by U.S. Bankruptcy Judge Paul R. Hage. The sale follows negotiations with lenders and local businesses that hold liens related to the construction and financing of the project. Under final terms, the sale could include the distillery itself, associated real estate and more than 6,000 barrels of bourbon currently aging in a cellar at the site.
The brewery’s parent company sought bankruptcy protection in July 2025, shortly before a hearing in Boyle County Court that could force a public auction to pay off unpaid construction debt. Luca Mariano Distillery and LMD Holdings subsequently joined the bankruptcy case in November. Court records show the company owes more than $34.5 million in total, with much of the debt held by SummitBridge, which received the original loan from Truist Bank.
Several Kentucky contractors and agricultural lenders are also listed as the top creditors. They include Danville builder Doss & Horky, which owes more than $2 million, as well as 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, the Lexington Herald-Leader reported.
Bids must be submitted by February 27, according to a court-approved schedule. The debtors have the right to publicize the sale in national media outlets such as The Wall Street Journal to reach potential buyers outside Kentucky. The court also approved a possible auction of the assets in early March if the private sale cannot go ahead. 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 the company intended to reopen after filing for bankruptcy. The brand entered the market with sourced whiskey and plans to begin distilling its own bourbon upon completion of the Danville facility in 2025. Construction was completed last summer, but the company ran out of money before full production could begin.
In July, Viola said the bankruptcy filing was “an effort to maximize asset value for all stakeholders. Luca Mariano Distillery and LMD Holdings have successful business models that have withstood previous economic challenges in our industry and, with the support of their employees, customers, communities and creditors, are poised to emerge successfully.”
