CHATTANOOGA — The ongoing legal battle between Farm Credit Mid-America (FCMA) and Uncle Nearest Distillery took another turn last week as the lender asked a federal judge to broaden the scope of the court-ordered receivership.

In a filing made on September 25, FCMA argued that three companies tied to co-founders Fawn and Keith Weaver – Grant Sidney, Inc., Humble Baron, Inc., and Quill and Cask Owner, LLC – should be placed under the Receiver’s control alongside Uncle Nearest itself. The lender claims the companies are so financially entangled with Uncle Nearest that they should be treated as one enterprise.

In August, that same federal court named Phillip G. Young as the court-ordered receiver. The 18-page ruling issued August 22 gave Young purview over the entire Nearest Green empire – including the Nearest Green Distillery property, the Eady Road property, intellectual property, bank accounts, contracts, and even litigation claims. {To read our full coverage of that update in the case, click here.}

Why It Matters

The court appointed Young to take control of Uncle Nearest’s finances after FCMA raised concerns about repayment of over $108 million dollars in loans. If the judge agrees to expand the receivership, Young could also access the books and assets of the three related companies – potentially pulling more money into the pool available to creditors

The new filing claims that Grant Sidney, Inc., owned solely by Fawn Weaver, allegedly wired more than $16 million to Uncle Nearest this year to cover payroll, a loan paydown, and other expenses. It also asserts that Humble Baron, Inc., which operates the bar and restaurant on the Nearest Green property, allegedly had its bills – including part of a legal settlement and more than $125,000 in Guinness World Records fees – paid by Uncle Nearest. Lastly, the new filing sates that Quill and Cask Owner, LLC, a Tennessee company managed by Keith Weaver, reportedly made a $275,000 payment to Uncle Nearest earlier this year.

FCMA argues that these transactions show blurred lines between the Weavers’ various companies and Uncle Nearest, making it necessary for the Receiver to dig deeper.

What Happens Next

In the seven-page filing, the lender is asking the court to both formally add the three companies to the receivership and give Young authority to review financial records of any other Weaver-linked entities.

The court has not yet ruled on the request. •

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