Philadelphia distiller New Liberty has become the top bidder for the former Midnight Madness spirits producer in Trumbauerville, which declared bankruptcy this past summer. Laura Smythe proofed the details in her Philadelphia Business Journal coverage of the entity’s future.

The winning bid for the Chapter 11-shuttered business was $1.4 million, offered at an August 2021 auction. The proposed purchase price includes $50,000 in “payment of certain administrative expenses and a payment of $50,000 to be allocated to unsecured creditors,” according to official documents.

The sale approval hearing should address issues related to Midnight Madness employees and any attempt to continue its operations in Bucks County.

Although New Liberty is top bidder, litigation continues to swirl around the deal.

A federal bankruptcy court trustee has objected, claiming that the sale price is insufficient to pay either unsecured creditors or administration expenses. As well, there is a motion to refile the case as Chapter 7 (as opposed to Chapter 11) in the absence of an effective Midnight Madness reorg plan.

As well, Midnight Madness co-founders Anthony Lorubbio and Casey Parzych continue to parry, continuing with separate litigation efforts since April in the Court of Common Pleas of Bucks County.

New Liberty’s ability to make the bid for Midnight Madness results from a year of robust performance, driven by an e-commerce strategy deployed during the pandemic.

More on this story is at the Philadelphia Business Journal.