Stoli US Branch’s Bankruptcy Exit Plan Rejected by Judge (1)

Stoli Group’s US arm and its bourbon affiliate Kentucky Owl LLC were unable to convince a judge to approve their bankruptcy exit plan following a lengthy trial.

The plan’s treatment of senior lender Fifth Third Bank NA’s more than $60 million secured claim isn’t fair or equitable, Judge Scott W. Everett of the US Bankruptcy Court for the Northern District of Texas said during Friday bench ruling.

The decision, which came nearly a year after the alcohol distributor filed for bankruptcy, focused on the value of Kentucky Owl barrels.

“I hope that another chapter 11 plan is confirmed in this ...