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On Friday, a bankruptcy judge rejected a chapter 11 restructuring plan for the U.S. arm of spirits maker Stoli Group because its proposal largely relies on its Kentucky bourbon inventory to pay down its bank debt. Kentucky’s bourbon market is oversaturated with inventory at a time when some consumers are moving away from spirits.
Judge Everett, when rejecting Stoli’s bankruptcy plan, referred to evidence submitted by top lender Fifth Third Bank about the value of 35,000 barrels of bourbon in a market flooded with inventory. An expert witness for the bank testified the barrels will be “very, very, very difficult to sell,” Everett said.
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