Bloomberg Law Asks Dinsmore Restructuring Attorney to Weigh in on Distillery Solvency Challenges

In a recent Bloomberg Law article that explores the financial distress facing distilleries following the COVID-era sales boom, Dinsmore partner Ellen Arvin Kennedy explains the valuation challenges these businesses are facing. The piece outlines how shifting consumer habits, market saturation and regulatory delays have created solvency issues for many alcohol producers, particularly those handling bourbon and whiskey.

As a longtime bankruptcy attorney and professor at the University of Kentucky, Ellen shared that aging inventory can complicate financial recovery. She explained that while barrels and equipment retain value, the constant depreciation of spirits aging in barrels makes it harder for companies to recover financially or attract buyers.

In her practice, Ellen has experience handling commercial bankruptcy, insolvency and creditors' rights matters for clients, including advising Chapter 11 and liquidating trustees and both creditors and debtors in complex liquidations and corporate wind-downs.

She provides restructuring assistance to clients looking for out-of-court resolutions, and handles foreclosures, complex collection actions and litigation matters in state courts and federal to enforce the rights of secured creditors.

Read the full Bloomberg article here.