Stoli’s US Vodka Arm, Lenders Reach Deal Over Chapter 11 Trustee

Stoli Group’s bankrupt US arm and bourbon affiliate Kentucky Owl LLC reached an agreement to appoint at least one Chapter 11 trustee to help wind down the businesses after its largest senior lender—Fifth Third Bank NA—opposed converting the case to a Chapter 7 liquidation.

Stoli, Fifth Third, and a committee of unsecured creditors are working to finalize whether there will be one trustee handling both companies or two overseeing separate liquidations, the parties said during a Monday status conference in the US Bankruptcy Court for the Northern District of Texas.

A status conference is set for Tuesday to ...