Bank Pushes Back
Fifth Third Bank pushed back, warning that bourbon prices remain weak and insisting it is not positioned to sell liquor. The bank also argued the plan unfairly prioritizes unsecured creditors—who are set to be paid in full with cash—while leaving equity holders untouched.
“Bourbon is not a balance sheet panacea,” bank attorneys cautioned, pointing to valuation disputes that have already forced large portions of the confirmation hearings behind closed doors.
From Ransomware to Reorganization
Stoli filed for Chapter 11 bankruptcy after a 2024 ransomware attack paralyzed operations, compounding an industry slump following COVID-19 and ongoing trademark battles with the Russian government tied to President Vladimir Putin.
The hearing, now stretching into its fifth day, will continue on Aug. 29 as Judge Everett weighs whether the vodka maker’s liquor-backed lifeline satisfies federal bankruptcy law.
Representation
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Stoli Group USA is represented by Holland N. O’Neil, Stephen A. Jones, Mary Rofaeil, Zachary C. Zahn, Ann Marie Uetz, Michael J. Small, and David B. Goroff of Foley & Lardner LLP.
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Fifth Third Bank is represented by Brent R. McIlwain and Christopher A. Bailey of Holland & Knight LLP and Jeremy M. Downs, William C. Meyers, and Steven J. Wickman of Goldberg Kohn Ltd.
