Distillery founders agree to turn over more bank records to resolve asset fight
The founders of Uncle Nearest Distillery and Nearest Green whiskey have agreed to share more financial details of 10 companies that could join the Tennessee distiller under a receivership umbrella.
The financially troubled bourbon and whiskey company has been in the hands of a receiver since September after defaulting on more than $108 million in loans. The receiver had asked for clarification from the court on whether to rope in other related businesses that showed financial ties.
U.S. District Judge Charles E. Atchley Jr. on Wednesday signed an agreed order between the receiver, Kentucky lender Farm Credit Mid-America and the 10 entities, which are owned and/or controlled by Fawn Weaver or her husband, Keith Weaver.
The Weavers opposed expanding the receivership, arguing that the businesses are unrelated even though several are tied to Uncle Nearest, including the Humble Baron “world’s longest bar” on the distillery grounds, or provided cash injections.
Under the court order, the Weavers will turn over two years of financial records within seven days, including bank statements, check copies, deposit slips and wire requests. The receiver will have 14 days to review the statements then may request up to three more years of bank statements and related documents.
Following a comprehensive review, the receiver can ask for any additional clarification, and then either request a hearing on the original motion or withdraw it.
This could come sometime in the next two months, based on the timeline.
The motion and the timeline came after a filing by the Weavers, who accused the receiver of doing the bank’s bidding. In a follow-up filing, the receiver denied that accusation and reiterated his legal independence.
