159-year-old whiskey brand fights for bankruptcy over liquidation

159-year-old whiskey brand fights for bankruptcy over liquidation Daniel Kline Sun, May 24, 2026 at 12:35 AM GMT+7 6 min read Once a company gets placed into a receivership, the owners lose control and, in most cases, the decisions made benefit creditors first. "A receivership was traditionally intended to help creditors recover amounts outstanding under a secured loan if a borrower defaulted on its loan payments. Receiverships are one of the most powerful solutions available to aid creditors," according to Investopedia. In some cases, however, the receiver can help find a path forward to keep the company operating. "They're also used by companies in financial distress. They can be part of a company’s restructuring process. Receivership can help a company restructure financially or operationally during financial distress. A receivership can be used when a company is headed toward bankruptcy," the financial website added. Under a receivership, however, the company's management loses operational control. That's different from Chapter 11 bankruptcy, which allows management to remain in place and attempt to negotiate with creditors, vendors, and landlords. “The receiver’s job is to literally operate the business,” restructuring attorney John Mark Jennings told Smart Business in explaining how receiverships shift operational control away from company founders. Uncle Nearest, a whiskey company with 159 years of history, has been placed under a receiver, Phillip G. Young Jr. The founder of the company and its largest shareholder, Fawn Weaver, believes the company should not be controlled by Young, and filed a lawsuit to move the company from a receivership to a Chapter 11 bankruptcy. Young has continued operating the company, and its products remain on shelves. In visits to multiple liquor stores near my home in South Florida, multiple Uncle Nearest products were available, and staff told me that they had not noticed any changes in availability for the brand. The founders and CEO of Uncle Nearest filed a lawsuit against Farm Credit Mid-America in the Supreme Court of the State of New York, alleging the lender engaged in a smear campaign against the fast-growing whiskey brand by knowingly circulating false accusations, including claims of missing inventory, financial misconduct, negative cash flow, and insolvency, the company shared in a press release. “The accusations circulated about us were not only false. The bank knew they were false when they made them, and they knew those accusations would strike directly at the credibility that allowed this brand to grow against all odds in this industry,” said Weaver. Weaver said the company filed for Chapter 11 protection in order to bring the court-appointed receivership to an end. That will lead to a number of things: Through the Chapter 11 proceeding and related litigation, Uncle Nearest, Inc. will pursue claims and counterclaims against its lender arising from the administration of the credit facility. The filing allows the company to protect the interests of all creditors and shareholders, continue normal operations, and address claims and counterclaims related to the secured lending relationship in the proper forum. Court filings associated with the Chapter 11 proceeding reflect approximately $13,188,927 in unsecured obligations. The loan at issue with Farm Credit reflects a stated principal balance of approximately $102,521,326, which the company disputes and will address through claims and counterclaims against the lender. These liabilities stand against enterprise assets estimated at approximately $529 million. As the receiver, Young had been working to fix the brand’s finances. “Uncle Nearest Inc. is preparing to sell off non-core assets, including French vineyards, a Cognac château, and other real estate, as part of efforts to stabilize the Shelbyville whiskey company under court-appointed receivership,” the Moore County Observer reported. Young had said that a liquidation or Chapter 7 bankruptcy filing was possible. Weaver wants to prevent a liquidation of the brand. Weaver's original request to move into Chapter 11 bankruptcy was denied by the court. She appealed that decision, which leaves the company's future unclear. Weaver has now filed documents in the U.S. District Court for the Eastern District of Tennessee asking for an expedited appeal of the dismissed Chapter 11 case. "The case for expedited review is simple and straightforward: This court has the authorityto expedite the appeal process, and the standard under Rule 8013 is to demonstrate good cause to do so. Good cause has a specific definition in this context, which the receiver has completely ignored in its response: i.e., that 1) a constitutional right has been impaired and 2) there is irreparable harm being caused to the Appellant," Weaver's lawyers wrote in the court documents. Weaver is asking for the expedited hearing because she believes that Young's continued manageme

159-year-old whiskey brand fights for bankruptcy over liquidation

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