The founders of whiskey brand Uncle Nearest have filed an emergency motion challenging the ongoing receivership of the company.
The motion, filed Tuesday, Jan. 20, by Grant Sidney Inc. and married couple Fawn and Keith Weaver with the U.S. District Court for the Eastern District of Tennessee, requests an expedited evidentiary hearing over several days to determine if the receivership is still needed, according to the Moore County Observer.
As AFROTECH™ previously reported, Uncle Nearest was placed under receivership in August 2025 after reportedly defaulting on more than $108 million in loans from Farm Credit Mid-America. The Weavers have attributed the default to former Chief Financial Officer Mike Senzaki, who allegedly inflated barrel inventory, leading to a $24 million credit increase, per the outlet.
U.S. District Judge Charles E. Atchley Jr. appointed Tennessee attorney Phillip G. Young Jr. as receiver of the company. Young currently manages the Shelbyville, TN, distillery, as well as the company’s “real estate holdings, intellectual property, affiliated ventures, and related entities,” according to another article by the Moore County Observer. As AFROTECH™ previously reported, Young is exploring refinancing Farm Credit’s loans and/or marketing substantially all of the company’s assets, including the distillery, with guidance from investment banker Arlington Capital Advisors.
Investor group NexGen2780 has also expressed interest in buying out Uncle Nearest’s $108 million debt, filing a letter with the federal court, according to a separate story from AFROTECH™.
Meanwhile, the Weavers are seeking, in the latest emergency motion, for the receiver to be removed from overseeing the company, the Moore County Observer reports. They are also open to an alternative that would temporarily restrict the receiver’s rights to asset monitoring and reporting, and move control of daily operations to Uncle Nearest’s board and management.
The founders argue that the circumstances that led to the receivership being placed have changed, so federal courts have it in their power to adjust in response, per the outlet. They are seeking to provide testimony and documentation so the court can make an informed decision.
The Weavers flagged several concerns, including that a Farm Credit officer had approved nearly $67 million in loans over 13 months before Farm Credit moved to ask for a receiver, and that person had not yet testified under oath, the outlet states. In addition, the founders claim the company had not been in default and that the missed January 2024 payment was made shortly thereafter, with $15 million given to Farm Credit before the receivership.
In the emergency motion, the whiskey inventory was also addressed. The couple claims that the nearly $21 million in whiskey inventory (or 20,000 barrels) in question was not missing and that the false conclusion was reached based on an incomplete audit, per the Moore County Observer. They say the barrels were allegedly purchased under forward contracts using a third-party financing method and that should be taken into account.
The founders also share key efforts to further the brand, which have been on hold under the receivership, such as onboarding a seasoned beverage-industry chief financial officer, securing management from a Big Four accounting firm, and establishing a new board of directors, the outlet reports.
As it relates to targeting debt, the Moore County Observer notes that they also mentioned a plan to reduce debt and stabilize the balance sheet by working with financial data from professionals hired by Young. This plan would include managing creditor claims through cash flow, negotiating restructuring, and providing asset-backed repayment, without negatively impacting the company’s value, per the outlet.
While sales volume has declined under the receivership, the motion states that the company — a brand that reportedly surpassed a $1 billion valuation, per AFROTECH™ — is “financially healthy” and can continue operating, according to the Moore County Observer. Still, the Weavers share concerns that the receivership does not align with ensuring the business can continue operating, as the move has led to a decrease in Uncle Nearest’s market position, sales volume, and overall value, per the outlet.
They reportedly believe the receiver’s qualifications and focus lie more in Chapter 7 liquidations than in reorganizations, the Moore County Observer shares. The motion also states that shareholders are concerned that restructuring without the original leadership will result in a sale at a price lower than the company is worth.
The Weavers are seeking an evidentiary hearing within two weeks or for the temporary restrictions on the receiver to be implemented immediately.
