An iconic American whiskey brand is on the precipice of Chapter 7 liquidation, a move that would compel the sale of its extensive vineyards and valuable real estate holdings. Uncle Nearest Inc., currently in receivership, finds itself embroiled in a fierce conflict involving its founders, its court-appointed receiver, and a major creditor.
Financial Woes and Legal Battles
The company's financial distress is centred on a substantial $108 million lawsuit filed by creditor Farm Credit Mid-America, which claims it is owed this significant sum. Concurrently, founders Fawn and Keith Weaver are contending with the company's court-ordered receivership, overseen by Tennessee attorney Phillip G. Young.
Asset Liquidation Plans
According to a court filing from October 1, receiver Phillip G. Young is preparing to liquidate key assets. This includes vineyards located in France, a Cognac château, and prime real estate on Martha's Vineyard. Despite these planned sales, Young has indicated that the core whiskey brand remains viable and is expected to continue operations.
"The Receiver believes that this receivership is progressing smoothly and that the opportunity for the Company's successful emergence from receivership is very good," Young stated in his filing. "While challenges lie ahead, the outlook is positive."
Founders' Allegations of Fraud
Fawn Weaver has publicly asserted that the brand fell victim to fraud, attributing their financial difficulties to former CFO Mike Senzaki. On Instagram, she claimed, "But for the fraud perpetrated by the Defendants' former CFO, Defendants fulfilled their monetary obligations to the Plaintiff." She emphasised that they were victims, not perpetrators, of fraud.
Weaver also maintained that the company is "stronger than ever" and, in an internal email obtained by the Lexington Herald-Leader, insisted that neither she nor her husband has personally profited financially from the business.
Refinancing Interest and Offers
The Lexington Herald-Leader further reported significant interest in refinancing Uncle Nearest's debt, with 100 parties expressing initial interest and 40 considering asset purchases. However, Young noted that only one entity, NexGen 2780, has presented a credible offer thus far, as no other potential buyer proposed a valuation exceeding the secured debt amount.
Young clarified that details of NexGen 2780's $108 million proposal remain unresolved, including whether the sum would cover the firm's assets, the company itself, debt refinancing, or a combination of these options.
Uncle Nearest was previously valued at over $1 billion by Forbes in 2024, highlighting the dramatic scale of its current financial predicament.
