Uncle Nearest Receiver Requests For Federal Judge To Deny Emergency Request To Speed Up Bankruptcy Appeal – AfroTech
Uncle Nearest receiver Phillip G. Young Jr has requested that the whiskey brand’s request to speed up its bankruptcy appeal be denied.
As AFROTECH™ previously told you, Uncle Nearest founder and CEO Fawn Weaver approved a Chapter 11 filing to reorganize debts for Uncle Nearest, Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings, LLC in the U.S. Bankruptcy Court for the Eastern District of Tennessee, Knoxville Division, according to Young.
Uncle Nearest has been under receivership since August 2025 after defaulting on more than $108 million in loans to its lender, Farm Credit Mid-America.
“Chapter 11 requires complete financial transparency. In that courtroom, no one gets to hide behind filings without evidence or accusations without proof, and the picture that has been painted about Uncle Nearest will now have to be proven through numbers that add up, not words,” Weaver said in a March 17 Instagram video.
“Court filings associated with our Chapter 11 proceeding will reflect $13.2 million in unsecured obligations. The loan at issue with Farm Credit has a principal balance of $102.6 million, which the company disputes and will address through claims and counterclaims against that lender. These liabilities, however, stack up against an enterprise value estimated at approximately $529 million. Chapter 11 is what has allowed so many of America’s long-standing companies to keep growing after running into challenges,” she continued.
Two days after Weaver’s announcement, U.S. Bankruptcy Judge Suzanne Bauknight blocked the bankruptcy filing, ruling that Weaver lacked the authority to do so under the receivership. Young and the company’s board of directors, which was eliminated after Young was appointed receiver, would have to approve the bankruptcy filing, according to The Tennessean.
The Moore County Observer reports that Young has asked a federal judge to deny an emergency request to expedite a bankruptcy appeal filed in the company’s name. He argues that the motion repeats arguments already pending in the larger receivership case and does not present any new issues, according to a response filed Monday in the U.S. District Court for the Eastern District of Tennessee.
