Vodka giant Stoli Group USA returned to bankruptcy court Friday with a revised restructuring strategy, offering its lender a blend of bourbon barrels, alcohol inventory, and now a real estate lien to partially satisfy its $78 million secured debt.
The modified Stoli Chapter 11 Plan, presented before U.S. Bankruptcy Judge Scott W. Everett, aims to calm lender concerns while keeping the company’s unusual repayment method alive: paying debt with thousands of barrels of unfinished bourbon.
A Bourbon-Fueled Bailout
Stoli’s counsel, Holland O’Neil, told the court that under the updated plan, the company would act as a sales agent for the alcohol inventory. In addition, Stoli pledged a lien on Louisiana real estate owned by a nondebtor affiliate as a safety net for Fifth Third Bank, the secured creditor.
If the bourbon fails to fetch its projected value within 27 months, the bank can seize the property. Stoli still intends for most of the debt to be repaid through 35,000 barrels of bourbon and other finished spirits, with any remaining balance settled in cash installments.
