Case filing & court posture: House Spirits Distillery LLC, doing business as Westward Whiskey, filed a chapter 11 petition on April 6, 2025 in the District of Delaware. Dkt. 1 The debtor is a Portland, Oregon-based craft whiskey producer with operations dating to 2004. Subchapter V procedures applied. Judge Karakatsanis presided.
Liquidity & DIP financing: The debtor secured interim DIP financing approval on May 23, 2025. Dkt. 129 Final approval followed on June 3, 2025. Dkt. 140 The facility provided critical liquidity for continued operations during the restructuring process.
Restructuring path: Following plan filing in July 2025 and modification in August 2025, Dkt. 222 the court approved bidding procedures for a sale of substantially all assets on September 4, 2025. Dkt. 293 Substantially all assets were sold to the DIP lender's designee via credit bid on October 1, 2025. Dkt. 337
The Modified Subchapter V Plan was confirmed, with the sale order approving asset disposition. DIP claims converted to equity in the NewCo, while unsecured creditors receive pro rata treatment from available cash flows. Preferred and common equity interests were cancelled.
Current status: The case remains active post-effective, with monthly operating reports and fee applications current as of February 2026, indicating ongoing administration and wind-down activities.