Nearest Green Distillery Placed Under Receivership As Fawn Weaver Loses Control Amid $108M Loan Dispute

The Nearest Green whiskey distillery in Tennessee will be placed under a court-appointed receivership following a federal judge’s order on Aug. 14, the Lexington Herald-Leader reports.

The decision removes operational control from founder Fawn Weaver and her husband, Keith Weaver, after Louisville, KY-based lender, Farm Credit Mid-America, alleged that the couple — along with the Nearest Green whiskey distillery and its Uncle Nearest brand — defaulted on more than $100 million in loans and were close to missing additional payments, AFROTECH™ previously reported.

In a declaration filed with the court after the judge’s decision, Fawn Weaver called the lawsuit “not only inaccurate” but “a flat-out lie used to smear my good reputation,” The New York Times reported.

She maintained that assigning control to a receiver would severely damage the brand by reducing her prominence as both its internal leader and public representative.

“The Uncle Nearest brand itself would become worthless, as whiskey buyers would view the company as having been taken from me,” she wrote, per The New York Times.

Based on reporting from the Lexington Herald-Leader, the court determined that appointing a receiver was essential for protecting disputed assets, managing property, and ensuring a fair distribution of those assets, if necessary.

The order also stated that the court could allow the Weavers to continue marketing Uncle Nearest to protect the brand’s image. Farm Credit Mid-America has reportedly expressed support for Weaver continuing in that marketing role, the Lexington Herald-Leader states.

An earlier agreed order prohibited the sale of any Nearest Green whiskey distillery assets and imposed a gag order on the Weavers, the outlet reports. The recent decision indicated that doubts about the company’s ongoing solvency could jeopardize Farm Credit Mid-America’s ability to secure repayment for its loans. Neither party disputed that the loan balance had increased by $24 million due to what was described as misrepresented barrel inventory.

The Weavers, per the Lexington Herald-Leader, have attributed the misrepresentation to former Chief Financial Officer Mike Senzaki, claiming they were unaware of the issue. However, the judge noted that the missing barrels, which were meant to secure the additional $24 million, called into question the adequacy of the loan’s collateral, especially since most of the distillery’s other assets are already encumbered.

Both the Weavers and Farm Credit, per the Lexington Herald-Leader, are required to “submit additional briefing on their proposed receiver candidates by midnight Aug. 20.”