Philadelphia Distillery’s Bid for Trumbauersville’s Midnight Madness Distilling May End Its Bankruptcy Nightmare
The nightmare bankruptcy proceedings of unwinding Trumbauersville distillery Midnight Madness may be showing signs of ending. A Philadelphia distillery, New Liberty, is working toward the acquisition of what’s left of it. Laura Smythe sifted through the dregs of the former spirits producer for the Philadelphia Business Journal.
The collapse of Midnight Madness earlier this year was a contentious parting of ways between its two founders. The business was a victim of COVID-19 economics, which sapped the sale of its Faber brand of spirits.
Millstone Spirits LLC, which operates under the New Liberty moniker, placed a winning $1.4 million bid at the auction for the business. New Liberty sees the acquisition as a chance to expand its brand in the suburbs.
There is, however, a federal bankruptcy court objection to the offer. Court documents claim it is too low to adequately cover losses from unsecured creditors and administrative expenses.
Litigants are also debating the action’s filing as Chapter 11 versus Chapter 7, whose proceedings result in liquidation.
Ordered by the bankruptcy court, the auction last week included Midnight Madness’ real estate, intellectual property, and distillery process equipment.
More on the ongoing legal issues of Midnight Madness is at the Philadelphia Business Journal.
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