Distilled spirits manufacturer Uncle Nearest, Inc. enters Chapter 11 bankruptcy. The company, which is globally recognized for its whiskey products, has taken this step while being involved in an ongoing litigation with one of its secured lenders, Farm Credit Mid-America.
Bankruptcy Comes Amid Legal Dispute with Lender
The company’s Chapter 11 filing comes at a time when it is involved in a legal issue with Farm Credit Mid-America, one of its secured lenders.
PR Newswire reports that the company’s founders, CEO, and largest shareholder filed a lawsuit against the lender, alleging a ‘smear campaign’ against the brand. The complaint states that the lender knowingly made false statements regarding financial misconduct, missing inventory, insolvency, and negative cash flow.
The company alleges the actions were intended to protect the lender’s banking interests. In addition, it tried to avoid questions regarding the failed administration of its $102 million credit lending facility, which enabled Uncle Nearest’s expansion.
According to court filings, the distilled spirits manufacturer has around $13,188,927 in unsecured debt. Farm Credit Mid-America has stated that the company owes it $102,521,326. However, the company disputes the claim, stating it holds assets of approximately $529 million.
CEO Fawn Weaver said, “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.”
Weaver added that the Chapter 11 filing ends the court-appointed receivership. The company is now geared up to initiate claims and counterclaims against Farm Credit Mid-America.
In addition, the filing helps with the protection of the interests of shareholders and creditors listed in the petition. Uncle Nearest Inc. can continue operations as normal and resolve the loan-related disagreements through a correct legal process.
Uncle Nearest, Inc. Files for Chapter 11
Uncle Nearest, Inc. submitted a voluntary Chapter 11 petition on March 17, 2026, according to the filing details available on PACER. The spirits manufacturer’s latest process is taking place in the U.S. Bankruptcy Court for the Eastern District of Tennessee.
Attorney Lynn Tarpy of Tarpy, Cox, Fleishman & Leveille, PLLC is representing the company.
Court filings show CEO Fawn Weaver signed the petition as the company’s authorized representative.
Case Related Details
RK Consultants states that the Shelbyville, Tennessee-based company currently owes around 200-999 creditors. Court filings indicate that funds will be available for distribution to the unsecured creditors.
Further information listed in the Chapter 11 petition is:
- Filing Date: March 17, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of Tennessee
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-30470
- Estimated Assets: $50,000,001-$100 million
- Estimated Liabilities: $10,000,001 to $50 million
- Reason for Filing: Restructure business under court supervision
Case filings add that certain affiliates of Uncle Nearest, Inc. had filed for bankruptcy. These include Uncle Nearest Real Estate Holdings, LLC, and Nearest Green Distillery, Inc.
Company Background
The Shelbyville, Tennessee-based company has operations across 12 countries and 50 states with products available in 50,000-plus stores, hotels, restaurants, and bars. The 458-acre Nearest Green Distillery has established itself as the seventh most-visited global distillery.
Using its latest filing, Uncle Nearest, Inc. intends to maintain business continuity while handling its dispute with Farm Credit Mid-America in court. New developments in the case will be instrumental in the outcome of its restructuring efforts and lender claims.
