Sanctions sought on Fawn Weaver after she attempts to file Uncle Nearest bankruptcy
Hours after Fawn Weaver announced she had taken her troubled whiskey brand Uncle Nearest into bankruptcy protection, the receiver running the company called for judicial sanctions against her and is moving to block the petition.
Late March 17, receiver Phillip Young filed an expedited motion for sanctions against Weaver and/or her counsel for Weaver’s “wanton and willful violation of this Court’s order appointing the receiver.” Under that order, only the receiver has the legal authority to take actions on behalf of the company.
Young is requesting $75,000 in penalties, payable to Uncle Nearest, levied against Weaver and possibly her attorney.
It’s the latest twist in a legal battle that began last summer, when Kentucky lender Farm Credit sued Weaver, her husband, Keith, Uncle Nearest and Nearest Green Distillery. Farm Credit alleges that they defaulted on more than $100 million in loans.
At the request of Farm Credit, a receiver has been appointed to run the distillery and whiskey and bourbon brand since last fall.
Weaver also claimed that she has filed a lawsuit against Farm Credit.
According to her news release, Weaver, as CEO, founder and the largest shareholder in the brand, is alleging that the lender “engaged in a smear campaign against the fast-growing whiskey brand by knowingly circulating false accusations, including claims of missing inventory, financial misconduct, negative cash flow and insolvency.”
Weaver announced the news on Instagram, saying that the Uncle Nearest receivership “is done” but it is unclear what immediate impact the filings will have.
Only the receiver has the power to take Uncle Nearest or any of the receivership entities into bankruptcy protection, according to the court orders.
According to the receiver, Weaver and her attorney violated those orders.
“Despite the clear orders of this Court that the Receiver, and only the Receiver, could act on behalf of the receivership entities, on March 17, 2026, Defendant Fawn Weaver signed and filed bankruptcy petitions on behalf of Uncle Nearest, Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings, LLC in the United States Bankruptcy Court for the Eastern District of Tennessee, Knoxville Division,” the receiver said in the filing.
He said that he has forwarded the receivership order to the bankruptcy counsel and asked for the petition to be dismissed but the counsel — Kelli Holmes of Tarpy, Cox, Fleishman & Leveille of Knoxville, Tenn. — refused to withdraw the petition.
“The unauthorized bankruptcy filings and Defendant Fawn Weaver’s press releases announcing the same has created substantial confusion among Uncle Nearest’s customers, vendors, distributors, employees, and shareholders — not to mention the confusion and trepidation it has caused among potential buyers of its assets,” the receiver said.
“Indeed, within just a few hours after the unauthorized bankruptcy filings, the Receiver received dozens of emails, telephone calls and texts from various constituents inquiring about how these bankruptcy filings impact the ongoing business of these receivership entities. This has had an immediate and negative impact upon the operation of these businesses.”
He said he and his counsel are taking steps with the bankruptcy court to dismiss the bankruptcies and asked U.S. District Judge Charles E. Atchley Jr. to issue financial sanctions against Weaver and/or her lawyer: “These actions require immediate and severe sanctions by this Court – not only because they are intentional and knowing violations of this Court’s orders, but because they have caused significant and irreparable damage to the companies that the Receiver has been ordered to protect.”
The receiver said he has considered and is likely file for bankruptcy protection for Uncle Nearest but that today’s filings were “premature and ill-conceived.”
She said the complaint against Farm Credit Mid-America had been filed in the Supreme Court of the State of New York. The receiver noted that Weaver said the lawsuit had been filed but did not address it in the filing.
The receiver has informed the federal judge in Tennessee overseeing the case that Uncle Nearest is insolvent, with more than $200 million in debts. Atchley had been expected to rule soon on whether to end the receivership, as Weaver has requested, or expand it, as the receiver has been seeking.
Young has been seeking to expand the receivership to include other Weaver-controlled businesses, including Grant Sidney, which was allegedly used by Weaver to hide from Farm Credit $20 million in loans from Jay-Z’s venture capital firm MarcyPen to Uncle Nearest.
Weaver disputed that characterization and claims her company is still worth more than half a billion dollars.
“The accusations circulated about us were not only false. The bank knew they were false when they made them, and they knew those accusations would strike directly at the credibility that allowed this brand to grow against all odds in this industry,” said Weaver said in a March 17 news release.
According to the news release, the New York lawsuit alleges that Farm Credit “circulated accusations of missing inventory, financial misconduct, negative cash flow and insolvency despite possessing documentation contradicting those claims. The accusations were later repeated by national and industry media outlets.”
The news release also said that Uncle Nearest filed for Chapter 11 bankruptcy protection “bringing the court-appointed receivership to an end.”
“The filing allows the company to protect the interests of all creditors and shareholders, continue normal operations, and address claims and counterclaims related to the secured lending relationship in the proper forum,” according to the news release.
According to the news release, Uncle Nearest said in its bankruptcy filing that it had “approximately $13,188,927 in unsecured obligations. The loan at issue with Farm Credit reflects a state principal balance of approximately $102,521,326, which the company disputes and will address through claims and counterclaims against the lender,” according to the release.
Uncle Nearest claims “enterprise assets estimated at approximately $529 million.”
This story was originally published March 17, 2026 at 4:09 PM.
