Tennessee’s Nearest Green Distillery, the whiskey company behind the acclaimed Uncle Nearest brand, has been placed under federal receivership after defaulting on more than $100 million in loans, according to a federal court ruling issued August 14.
The move follows a lawsuit filed by Farm Credit Mid-America, Uncle Nearest’s primary creditor, which asked U.S. District Judge Charles E. Atchley to appoint a receiver to protect its collateral. The lender alleged that the distillery owed more than $108 million across multiple loans and interest payments and provided “apparently inaccurate” barrel inventory reports, inflating the value of reserves by $21 million. Farm Credit also cited unfulfilled operational adjustments and revenue shortfalls as additional concerns.
The New York Times notes that the defaults began back in 2023, but Farm Credit was willing to overlook them and even extend the loans further at the time, “in reliance upon Uncle Nearest’s representations as to its success and strategic growth.” But after further defaults, Farm Credit moved forward with the request for a receiver, a neutral third party who will manage the company, though Uncle Nearest’s owners will not lose possession of their assets.
Allegations of Financial Mismanagement
According to court documents, the lender accused Uncle Nearest of inflated barrel reports, breaches of financial covenants, and misuse of loan funds. The distillery, however, maintains that many of these alleged missteps were carried out fraudulently by former CFO Mike Senzaki, who is separately under federal investigation.
Judge Atchley acknowledged these defenses but determined that a receivership was necessary due to the lack of “adequate security” for the loan and persistent uncertainty surrounding the company’s solvency and barrel inventory accuracy.
Weavers Remain Publicly Involved
Co-founders Fawn and Keith Weaver may continue to represent the brand under the court’s receivership order. The ruling emphasized that allowing the Weavers to remain involved could help mitigate potential brand damage, “By keeping the Weavers involved in this way, they could mitigate any potential brand damage that a receivership might entail,” said the court.
Following the decision, Fawn Weaver posted a clip from Black Panther to Instagram, captioned: “The race is not given to the swift. Easy is never the expectation or goal,” accompanied by the hashtags #ThePeoplesCEO and #UncleNearestCEO.
Brand Legacy and Next Steps
Founded to honor Nathan “Nearest” Green, the first known African-American master distiller, Uncle Nearest has become a leading Black-owned whiskey brand. While the receivership raises questions about operational changes, asset management, and potential restructuring, the court’s allowance for the Weavers to remain involved preserves continuity for fans and consumers.
