A federal judge has dismissed an unauthorized bankruptcy petition filed by Fawn Weaver, the founder and sidelined CEO of Uncle Nearest, the Tennessee-based whiskey brand she launched in 2017.
On March 19, 2026, U.S. Bankruptcy Judge Suzanne Bauknight ruled from the bench in Knoxville that Weaver lacked the authority to submit Chapter 11 filings on behalf of Uncle Nearest and its related entities (including Nearest Green Distillery and Uncle Nearest Real Estate Holdings).
Judge Rejects Uncle Nearest Bankruptcy Filing
The company has been under court-appointed receivership since last year, with receiver Phillip Young holding exclusive control while a major debt lawsuit proceeds.
The receivership stems from a lawsuit by primary lender Farm Credit Mid-America, which claims Uncle Nearest owes more than $100 million (approximately $99 million in unsecured debt per Young’s reports).
Judge Charles Atchley’s order limited Weaver’s role to marketing and managing the Uncle Nearest brand—actions that did not include filing for bankruptcy without Young’s permission or board approval (the board having been dissolved under the receivership).
Bauknight emphasized that Tennessee law also prohibits corporations from filing bankruptcy without board authorization, which was impossible here. She described the filing as outside the scope of Weaver’s permitted duties, effectively violating the district court’s receivership order.
Weaver’s petition, filed earlier in the week, listed about $13.4 million in unsecured debt across 264 creditors—a figure significantly lower than the debt reported under the receivership.
Her attorney argued the move aimed to stabilize the company’s value and sales, while Young’s counsel called it a “Hail Mary” attempt to circumvent the receivership and regain control.
Following the ruling, attorneys for both sides declined to comment. Young’s team has sought sanctions against Weaver, requesting $75,000 for the alleged violation of court orders.
Separately, Weaver filed a lawsuit against Farm Credit Mid-America in New York on March 13, accusing the lender of defamation and other wrongdoing. The suit disputes several claims by Farm Credit, including:
- Alleged commingling of $20 million through transfers with Grant Sidney (Weaver asserts this was a properly documented, legitimate loan).
- Claims that roughly $21 million in whiskey barrels went missing (Weaver says inventory and warehouse records confirm the barrels remained in storage).
- Accusations that loan funds were misused to purchase a Martha’s Vineyard home (Weaver states Farm Credit was aware of the property purchase).
One of Weaver’s attorneys described the defamation claims as needing accountability when contradicted by records already held by the lender.
The receivership remains in place under Phillip Young, with the bankruptcy attempt blocked and legal battles ongoing between Weaver, the company, and its major creditor.