Judge dismisses Uncle Nearest bankruptcy filing

1:54 p.m. March 19, 2026

DUANE CROSS
MCO Publisher•Editor

A federal bankruptcy judge on Thursday dismissed the Chapter 11 cases filed earlier this week on behalf of Uncle Nearest and two related companies, ruling that founder Fawn Weaver was not authorized to file the petitions while the businesses were under the control of a court-appointed receiver.

U.S. Bankruptcy Judge Suzanne Bauknight ruled March 19 in Knoxville that Weaver lacked authority to file the Chapter 11 petitions. The ruling turned on who had legal authority to act for the companies during receivership – Weaver or the receiver. For now, that authority remains with receiver Phillip G. Young Jr., who was appointed as litigation continues over claims that the company owes more than $100 million in unpaid debt.

Docket entries show Bauknight granted motions to dismiss the cases and delivered the ruling from the bench. Young, identified in the docket as the “duly-appointed receiver for Debtors,” asked the court to dismiss the cases or recognize him as the companies’ authorized representative. The court granted that motion and dismissed the cases. The court also granted a motion for dismissal filed by Farm Credit Mid-America.

The dismissed cases involved Uncle Nearest Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings LLC.

With the bankruptcy cases dismissed, several other motions filed by the debtors were rendered moot, including requests for joint administration of the Chapter 11 cases, approval to employ Kenneth A. Welt as chief restructuring officer, authority to pay prepetition wages, and interim authority to use cash collateral.

The ruling blocks Weaver’s effort to shift the dispute into bankruptcy court and keeps the companies in receivership. Control over the companies’ operations and court strategy remains with the receiver.