Fawn and Keith Weaver, the founders of the Uncle Nearest whiskey brand, are opposing efforts to add more of their businesses that are already placed under judicial control. Nearest Green Distillery and the flagship Uncle Nearest whiskey brand have been under a receiver’s management since September, after lender Farm Credit Mid-America claimed the Weavers defaulted on more than $108 million in loans.

The weavers opposing efforts

Receiver Phillip Young asked US District Judge Charles Atchley Jr. to decide if other Weaver-affiliated businesses should be included in the receivership, including a restaurant and entertainment venue on the distillery grounds in Shelbyville, Tenn, according to The Lexington Herald-Leader.

In the new filings, the Weavers believe that the 10 businesses are separate from the distillery and not responsible for its debts. They argue that Uncle Nearest has sufficient assets to cover its obligations and that expanding the receivership would improperly deprive them of their financial interests.

The Weavers also said that Farm Credit’s allegations have caused “immediate financial and reputational harm,” including vendors stopping business with the company and customers stopping orders. “This is apparently the intent of Farm Credit, even though Farm Credit has not provided one shred of evidence to support its allegations,” the filing reads.

The 10 entities the Weavers seek to exclude from receivership include Humble Baron Inc., Grant Sidney Inc., 4 Front Street, Weaver Interwoven Family Foundation, Quill and Cask Owner LLC, Shelbyville Barrel House BBQ LLC, Classic Hops Brewing Co., Nashwood Inc., Shelbyville Grand LLC, and Uncle Nearest Spurs VI LLC.

The lawsuit against Uncle Nearest

The Black-owned brand was in dire straits, with disputes persisting over which assets were subject to a federal receivership.

The development came from a lawsuit filed by lender Farm Credit Mid-America, which claims Uncle Nearest, Nearest Green Distillery, and its founders, Keith and Fawn Weaver, defaulted on more than $100 million in loans. Farm Credit Mid-America also alleges that Nearest Green Distillery overstated the value of its whiskey barrels that were used as collateral by at least $24 million.

USA District Judge Charles E. Atchley Jr. appointed Phillip G. Young J, a bankruptcy and business attorney, as receiver, authorizing him to take control of Uncle Nearest and its assets. Young hired turnaround firm Newpoint Advisors Corporation to assess the business’s financial health.

Image: Fawn Weaver

Source link

Source Name : people of color in tech