Bankruptcy court asked to toss ‘unlawful’ Uncle Nearest filings
AI-generated summary reviewed by our newsroom.
- Receiver says Weaver lacked authority and asks court to dismiss her bankruptcy filings.
- Receiver seeks recognition as exclusive authorized representative or dismissal.
- Receiver, Farm Credit say company insolvent with $200M+ debt; receiver alleges bad faith.
One day after Uncle Nearest founder Fawn Weaver filed for bankruptcy for her whiskey brand and distillery in Tennessee, the receiver has asked the court to toss the petitions as “unlawful.”
Receiver Phillip Young, who has been in sole charge of Uncle Nearest whiskey and bourbon brand and Nearest Green Distillery since last fall, said in an emergency motion that Weaver does not have the legal authority to file for bankruptcy for the businesses.
“Fawn Weaver acted unlawfully and without any corporate authority when she signed and filed bankruptcy petitions in this Court on behalf of the Receivership Entities,” the receiver said.
Late March 18, Weaver’s attorneys filed an objection to the motion to dismiss. U.S. Bankruptcy Judge Suzanne H. Bauknight will hear the arguments at 10 a.m. March 19.
Uncle Nearest and Nearest Green, as well as Uncle Nearest Real Estate Holdings, have been in the hands of a federally appointed receiver since August after Kentucky lender Farm Credit sued Weaver, her husband Keith and their companies, alleging they defaulted on more than $100 million in loans.
Weaver has been attempting to regain control and end the receivership; U.S. District Judge Charles E. Atchley Jr. has been expected to rule soon on that request and on the receiver’s request to expand the receivership to include at least seven Weaver-controlled businesses, including one involved in a disputed $20 million loan from media mogul Jay-Z.
But on Tuesday, Weaver announced in a news release and videos on social media that Uncle Nearest had filed for bankruptcy and that she has sued Farm Credit in New York for defamation.
The receiver objected, and has asked Atchley to sanction Weaver and/or her attorney for the actions; he has requested fines of $75,000, payable to Uncle Nearest.
Now, the receiver is seeking to have the bankruptcy petitions that Weaver filed for Uncle Nearest, Nearest Green Distillery and Uncle Nearest Real Estate Holdings dismissed, possibly as early as March 19, when he requested an expedited hearing. That is the same date that Weaver and her counsel requested for hearing their petitions.
He’s asked the court to either dismiss the cases or recognize the receiver as the exclusive authorized representative of the debtors.
In his filing in bankruptcy court, the receiver pointed to orders from Atchley establishing that the receiver is “exclusively” vested with the power to act on behalf of the company, including to file bankruptcy.
Young said in a filing late March 17 that he has contemplated and may yet take Uncle Nearest into bankruptcy protection but that filing now is premature and has caused disruption to the business. He has been attempting to sell off all or parts of the business, including a house on Martha’s Vineyard apparently used for promotional purposes.
The receiver and Farm Credit have said that Uncle Nearest is insolvent, with more than $200 million in debts, including the loan now in default to Jay-Z, and no credible bids that would cover even Farm Credit’s loan liability.
The receiver also said that Weaver acted in improperly and in bad faith by attempting to file a bankruptcy petitions.
“The three petitions filed in this Court are in furtherance of the Receiverships Entities’ and Fawn Weaver’s attempts to evade orders of the United States District Court for the Eastern District of Tennessee,” according to the filing.
In a footnote, the receiver pointed out that “Fawn Weaver has not attempted to hide the true purpose of these filings. Immediately after filing these cases, she published a press release announcing that these bankruptcy filings brought ‘the court-appointed receivership to an end,’” which he said courts have held to be bad faith.
This story was originally published March 18, 2026 at 11:36 AM.
