Update- Whiskeymaker Uncle Nearest Placed under Immediate Receivership

Uncle Nearest, a renowned American whisky maker, is under fire. The distillery is caught in the crossfire with one of its major creditors. What's the story?

The judge handling the case between Uncle Nearest and Farm Credit Mid-America has made a swift decision. A receiver has been appointed with immediate effect to oversee the assets of the distillery.

The appointment of a receiver does not mean the distillery is automatically at fault, nor that the lender is suddenly entitled to $108 million. The receiver’s role is solely to ensure that the lender’s investment is protected as securely as possible.

The judge stated:

Owners Fawn and Keith Weaver are no longer involved in the day-to-day operations, which must now be handled by the receiver. However, they are still permitted to represent the brand externally.

For Farm Credit Mid-America, this is a sign that the lender is in the right, but Uncle Nearest argues that the decision actually harms the distillery’s reputation.

The American distillery Uncle Nearest is in a significant dispute with Farm Credit Mid-America. This creditor has filed a lawsuit against the whisky maker, alleging that the distillery is defaulting on its bills. There are said to be various loans that each have not been repaid by the American whisky producer.

An overdue amount of more than 108 million dollars is reportedly outstanding. This sum includes loans and interest for the creditor.

For Farm Credit Mid-America, it's about more than just money. There was reportedly a financing for Uncle Nearest that shouldn't have been granted. This was provided to let the distillery start making cognac, but there's no sign of this endeavor. Furthermore, Farm Credit Mid-America cites the submission of seemingly inaccurate inventory reports as a reason for the lawsuit.

In connection with the debt and the unclear financing, Farm Credit Mid-America is demanding that a curator be appointed. This would need to happen to protect the collateral of the creditor, because the whisky maker does not provide clarity about ongoing matters.

The distillery responded to the allegations in early August. The accusations are incorrect and very offensive, according to co-founder Fawn Weaver.

What the creditor aims to achieve with the lawsuit is unclear to her. The date for the lawsuit has not been announced. As for now, this does not affect the availability of the whisky.

Fun Fact: Uncle Nearest is named after Nathan "Nearest" Green, an enslaved distiller who is recognized as the man who taught Jack Daniel the trade.