Uncle Nearest Founders Request Judge To Terminate Receivership, Claiming Sales Volume Took A Sharp Decline As A Result – AfroTech
Uncle Nearest’s founders are requesting the receivership to be terminated, according to The Lynchburg Times.
As AFROTECH™ previously reported, Uncle Nearest — a whiskey brand that reportedly surpassed a $1 billion valuation — was placed under receivership in August 2025 following claims by its lender, Farm Credit Mid-America, that the company defaulted on more than $108 million in loans.
The Weavers allege that Uncle Nearest’s former chief financial officer, Mike Senzaki, exaggerated barrel inventory, which led to a $24 million credit increase from Farm Credit, per AFROTECH™.
U.S. District Judge Charles E. Atchley Jr. appointed Tennessee attorney Phillip G. Young Jr. as receiver. Young now oversees Uncle Nearest’s Shelbyville, TN, distillery and its “real estate holdings, intellectual property, affiliated ventures, and related entities,” according to the Moore County Observer.
On Nov. 24, the Weavers filed an emergency motion to prevent the receiver from taking any further actions that would impact the business. It came at a time when Young was “moving toward a potential permanent disposition of the defendant’s assets,” according to the Lexington Herald-Leader. Young is working with investment banker Arlington Capital Advisors to explore the refinancing of the Farm Credit’s loans and marketing “substantially all assets of the debtors,” per the outlet.
The Weavers attempted to challenge the receivership to regain authority over dispute responses, but Judge Atchley Jr. denied the filing, according to The Lynchburg Times. The judge ruled that only the receiver may direct litigation on behalf of Uncle Nearest Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings, LLC.
Latest Update
In a motion filed ahead of the Christmas holidays in the U.S. District Court for the Eastern District of Tennessee, the Weavers are seeking to have the receivership dismantled. The Weavers claim that the company’s assets exceed outstanding debt, and there is no proof that they or current management had mishandled the company’s finances, a separate report from The Lynchburg Times states.
Claims had also been brought forward that the Weavers took company funds to purchase a $2.25 million home on Martha’s Vineyard, as AFROTECH™ reported. Yet, the filing notes that the couple’s Martha’s Vineyard property is not a part of the loan collateral, and Farm Credit was aware of this.
The Weavers also claim that the receivership has led to a decline in sales, decreased distributor confidence, and impacted retailer commitments, per The Lynchburg Times. The filing states that the company can operate as usual, that barrel counts are accurate, and that the collateral will be sufficient for Farm Credit.
If the judge grants the Weavers’ request, the receivership would be dismantled, and the Uncle Nearest Board would have the autonomy to challenge allegations brought by their lender through defenses and counterclaims, which they had not been able to do with receivership in place.
