A Kentucky bourbon distillery that completed construction a few months ago is now up for sale after a federal bankruptcy judge approved a process to address more than $34.5 million in unpaid debt, the Lexington Herald-Leader reported Thursday.
Luca Mariano Distillery in Danville will be offered to bidders following an order from US Bankruptcy Judge Paul R. Hage that came down on Wednesday. The sale follows negotiations with lenders and local businesses that have ties to the construction and financing of the project. Depending on the 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 rickhouse on the site.
The distillery’s parent company filed for bankruptcy protection in July 2025, shortly before a Boyle County court hearing that could have forced a public auction to satisfy unpaid construction debts. Luca Mariano Distillery and LMD Holdings later joined the bankruptcy case in November. Court records show the company owes a total of more than $34.5 million, with most of that debt held by SummitBridge, which acquired the original loan from Truist Bank.
Several Kentucky contractors and agricultural lenders are also listed among the largest creditors. They include Danville-based builder Doss & Horky, which is owed more than $2 million, along with Farm Credit of Elizabethtown and Farm Credit Leasing of Louisville, each owed more than $2 million. Other requests come from Keystone Industrial, Schardein Mechanical, Insulation Solutions and Hayslett Mechanical, according to the Lexington Herald-Leader.
Under the court-approved timeline, bids must be submitted by Feb. 27. Debtors are authorized to advertise the sale in a national outlet such as The Wall Street Journal to reach potential buyers beyond Kentucky. If a private sale does not go ahead, the court also approved a potential auction of the assets in early March. Any proposed sale would require final approval at a March 10 hearing in US 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 an upcoming whiskey and planned to start distilling its own bourbon in 2025 after the Danville facility was completed. Construction finished last summer, but the company ran out of capital before full production began.
In July, Viola said that the bankruptcy was filed “to maximize the value of the assets for all interested parties. Luca Mariano Distillery and LMD Holdings have a successful business model, have faced the previous economic challenges in our industry, and are ready to exit successfully, ideally with the support of its employees, customers, community and creditors”, according to the Herald-Leader.