Uncle Nearest hit by $100m lawsuit
Tennessee whiskey producer Uncle Nearest is facing a US$100 million lawsuit from its primary lender, Farm Credit Mid-America, for allegedly defaulting on multiple loans.
The lawsuit, filed on 28 July in the US District Court for the Eastern District of Tennessee, names Uncle Nearest, its Nearest Green Distillery, and co-founders Fawn and Keith Weaver as defendants.
Farm Credit Mid-America has requested the appointment of a receiver to protect its interests.
The allegations
According to Farm Credit Mid-America, Uncle Nearest owes more than US$108m across several loans and accrued interest.
The lender claims the whiskey producer provided “apparently inaccurate” barrel inventory reports that overstated values by US$21m, sold whiskey barrels to pay other obligations, and discounted future revenue streams to at least four parties.
The lawsuit also accuses Uncle Nearest of breaching financial covenants that required it to maintain at least US$1 in net income at the end of each calendar month and a net worth of US$100m during 2024.
The legal filing details a series of loans beginning with a US$35m revolving credit facility in July 2022, which Uncle Nearest requested to expand seven times, raising the limit to US$67m.
This credit was amended in July 2023, allowing the whiskey firm to buy a property in France to expand into Cognac. However, Farm Credit Mid-America claims it “has not received any information from Uncle Nearest that any portion of the Cognac business is operational”.
A further US$20m term loan was issued in July 2022, followed by a US$1.7m loan used in June 2023 to purchase 108 acres of land adjacent to the distillery.
In March 2023, the lender provided US$2.3m for a property on Martha’s Vineyard, which it claims was purchased through a separate LLC and later mortgaged to another lender, in violation of the loan agreements.
A US$15m real estate line of credit was also provided to finance the construction of the Nearest Green Distillery.
In its filing, Farm Credit Mid-America said: “The lender is left with no choice but to seek assistance from this court to protect its collateral and its rights.”
Uncle Nearest’s response
Uncle Nearest filed its response on 3 August, rejecting many of the allegations and calling them “salacious and inaccurate”.
The company claimed a receiver should not be appointed because the lender was fully informed of the circumstances surrounding the alleged default and was actively working with the company on a resolution.
A key part of Uncle Nearest’s defence is the claim that its former chief financial officer (CFO) engaged in fraudulent activity by misrepresenting barrel inventory values, which contributed to the disputes with its lender.
The CFO has since been terminated, and a third-party investigation into the misconduct is ongoing.
The company also stated that Farm Credit Mid-America approved its loan increases without independently verifying the barrel counts and was aware of a negotiated pause in loan payments during 2025 restructuring talks.
Uncle Nearest said it made nearly US$9m in repayments in 2024. Once a mutual agreement on restructuring was reached in 2025, it paid US$7.5m immediately.
Regarding the Martha’s Vineyard property, the company maintains that the purchase was fully transparent, and alleges that the lender did not request or take action to perfect a security interest in the property.
Its response concluded: “Here, defendants acknowledge that the agreements at issue technically allow for a receiver to be appointed but given the circumstances, one should not be appointed here. Plaintiff was fully informed and aware of the circumstances that led to the technical default and was working side-by-side with defendants to find a resolution.”
‘Operation Clear the Shelves’
Posting on Instagram, Fawn Weaver added: “Hit pieces? On Keith and me? Really? Wow. That’s… kinda cool.
“I had this surreal moment yesterday, thinking about all the hit pieces written about Keith and me in just 48 hours.
“Now, @keithwvr didn’t exactly share my reaction, but I thought, ‘Dang… you’ve got to be doing something really big for people to spend their energy writing hit pieces.’
“Part one of our response has been filed. Pay close attention to the emails included in the exhibits – especially the conversations between the bankers about the Martha’s Vineyard property.
“Part two is coming. And it’s going line by line. Regulators, mount up.
“Operation Clear the Shelves is in full effect! Let our distributors and partners know: Uncle Nearest is stronger than ever. And PLEASE post on social media when you help us #ClearTheShelves and tag me so I can share.
“Share this video far and wide. But more than anything – stand in the gap with truth. Love y’all. Always.”
The Spirits Business has reached out to Uncle Nearest for comment.
Earlier this year, Fawn Weaver revealed why she believes the spirits industry isn’t in decline.
She also spoke to The Spirits Business Podcast about powering the fastest-growing American whiskey brand in the US.
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