Uncle Nearest Property Listed for Sale Before Judge Decides on Receivership Expansion or Termination
Uncle Nearest is awaiting a decision on whether the company’s receivership should remain in place or be expanded to include Uncle Nearest and the current defendants, according to the Moore County Observer.
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.
Uncle Nearest’s property listed for sale
Receiver Phillip G. Young Jr listed the business’s Martha’s Vineyard property for sale. Farm Credit Mid-America alleges that Uncle Nearest borrowed $2.3 million for the property, which was purchased through a separate LLC and mortgaged to another lender, in violation of the loan agreements, according to The Spirits Business.
The property was listed for $2.59 million by Young on Jan. 26. A full-price offer was received on Feb. 18, along with two backup offers at the full asking price. Uncle Nearest’s brand allegedly used the property to host private gatherings to expand distributor and industry relationships, according to a court transcript.
The Martha’s Vineyard property is expected to shut on March 19. Young has asked the court to quickly approve the deal.
Subsequently, Young asked to expand the receivership to include 4 Front Street LLC, Grant Sidney Inc, Humble Baron Inc, Nashwood Inc, Quill & Cask Owner LLC, Shelbyville Barrel House BBQ LLC, and Shelbyville Grand LLC in a post-briefing hearing, as stated by the Moore County Observer.
Fawn and Keith Weaver 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.
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: Para Griffin
