Whiskey maker Uncle Nearest Inc. filed for bankruptcy as it engages in a legal battle with a court-appointed receiver and a lender.
Farm Credit Mid-America PCA is the company’s sole secured lender with a $108 million claim, according to the Tuesday petition in the US Bankruptcy Court for the Eastern District of Tennessee. The company’s assets are worth around $529 million, according to a press release.
Fawn and Keith Weaver, the founders of Uncle Nearest, also filed a lawsuit in the Supreme Court of the State of New York against Farm Credit on Tuesday.
The pair alleged in the press release that Farm Credit “engaged in a smear campaign against the fast-growing whiskey brand by knowingly circulating false accusations, including claims of missing inventory, financial misconduct, negative cash flow, and insolvency.”
Farm Credit didn’t immediately respond to a request for comment.
The dispute between Farm Credit and Uncle Nearest started in a Tennessee federal court when the lender convinced a judge last July that Uncle Nearest needed independent oversight.
The the whiskey company was placed into receivership in August and its founders have since been battling the lender and receiver over sale efforts.
Uncle Nearest faced questions regarding its solvency and its barrels’ valuation. The receiver previously said the company could be reorganized by the end of the first quarter of 2026. In December, the receiver sought permission to sell Weaver-owned property in Martha’s Vineyard, which Uncle Nearest opposed.
A federal district judge on Monday said he would appoint three appraisers to complete pre-sale requirements before ruling on the receiver’s request.
Uncle Nearest is among several distilleries struggling with financial distress amid a decline in demand following a pandemic-era boom in sales and spirits tourism.
In addition to Farm Credit’s claim, the whiskey maker also reported about $13.4 million in general unsecured claims.
Grant Sidney Inc., run by CEO Fawn Weaver, is the largest shareholder of Uncle Nearest.
Tarpy, Cox, Fleishman & Leveille, PLLC represents Uncle Nearest.
The case is Uncle Nearest Inc., Bankr. E.D. Tenn., No. 26-bk-30470, petition 3/17/26.
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