Uncle Nearest receivership fight widens

Post-hearing briefs clash over ‘single enterprise’ claims, alleged commingling

10:28 a.m. Feb. 28, 2026

DUANE CROSS
MCO Publisher•Editor

The federal receivership managing Uncle Nearest Inc. may soon expand to cover seven more businesses linked to the company’s founders. Farm Credit Mid-America and receiver Phillip G. Young Jr. told a judge that many transfers between the companies show they operated as a “single enterprise.”

These filings came in on Thursday, following a Feb. 9 hearing in U.S. District Court for the Eastern District of Tennessee in the case Farm Credit Mid-America, PCA v. Uncle Nearest, Inc., et al. (Case No. 4:25-cv-38) before Judge Charles E. Atchley Jr.

The main questions now are whether the receivership should continue and if it should be expanded beyond Uncle Nearest and the current defendants.

• Feb. 26 Filings

Seven Entities in Question

In a supplemental post-hearing briefing, Farm Credit said the receiver now actively seeks to place seven “Additional Entities” into the receivership estate:
• 4 Front Street LLC
• Grant Sidney Inc.
• Humble Baron Inc.
• Nashwood Inc.
• Quill & Cask Owner LLC
• Shelbyville Barrel House BBQ LLC
• Shelbyville Grand LLC

Farm Credit says its request aims to include businesses that were financially connected to the debtor and are important for understanding control, cash flow, and protecting collateral.

Receiver: ‘Almost 500’ Cash Transactions

In his post-hearing brief, Young said his team found “almost 500 cash transactions” between Uncle Nearest and related companies, along with many other non-cash transfers. He argued that the large number of transactions shows the businesses were run as a single enterprise that he cannot separate, so they should all be included under the Receivership Order.

For example, the receiver highlighted transactions involving MP-Tenn LLC, including two $10 million convertible notes executed “in or around February 2025,” which he described as loans from MP-Tenn to Uncle Nearest with an option to convert to equity.

Founders Seek to Terminate Receivership

Uncle Nearest founders Fawn Weaver and Keith Weaver, along with Grant Sidney Inc., are asking the court to reconsider or terminate the receivership. In their post-hearing filing, they argue that the conditions that justified the appointment of the receiver in August 2025 have changed and that the company is now operating better.

Their filing contends that (among other points) the company is “balance sheet solvent on a going concern basis,” that Farm Credit is fully collateralized, and that operating cash flows have been positive since the receivership began.

Farm Credit: Insolvency, Controls Central

Farm Credit disagrees that the receivership should end. In its brief, the lender says nothing has changed to remove the need for a receiver and points to issues it blames on previous management, such as poor financial controls and recordkeeping.

Farm Credit also says Uncle Nearest is still insolvent and highlights the size of its secured claim and other debts to support its position.

Related Entities: ‘Separate Companies’

Several of the businesses Farm Credit wants to include responded by saying they are separate companies with their own bank accounts and accounting. They say any transactions with Uncle Nearest were legitimate, documented, and had a valid business purpose.

4 Front Street LLC
Disputes the accuracy of the receiver’s transaction summaries as applied to it, stating that its bank statements show no transactions between 4 Front Street and the Uncle Nearest entities and that the alleged payments are unsupported by documents.

Grant Sidney Inc.
Says the main 2025 funding was properly documented and used entirely for Uncle Nearest’s benefit. It also argues that expanding the receivership to a separate California company is an extreme step not supported by the evidence.

Humble Baron Inc.
Says it is a Delaware company with its own accounts and ERP system. It operates a bar on the Nearest Green Distillery property under a lease with Uncle Nearest Real Estate Holdings.

Nashwood Inc.
Says it did consulting, project and event management, and grant application work for Uncle Nearest. This included helping secure about $500,000 in grants and incentives, billed at a flat monthly rate.

Quill & Cask Owner LLC
Says the receiver was wrong to list it as owned by both Weavers, stating it is fully owned by Keith Weaver. It also disputes Farm Credit’s claims about a proposed barrel transaction, saying the agreement was never finalized and the deal never happened.

Shelbyville Barrel House BBQ LLC
Says it runs a walk-up BBQ business on the distillery property and must stay separate under Tennessee’s alcohol laws. It warns that treating it as part of the distillery could limit the sale of some alcohol products.

Shelbyville Grand LLC
Says its transactions with Uncle Nearest relate to storage services at a climate-controlled warehouse, charged at $6,500 per month, and that a $130,000 payment in July 2025 covered 20 months of past-due storage fees.

Receiver Pushes Back on Role Dispute

In a separate response to the motion to reconsider and a request to limit access to proprietary information, the receiver told the court he does not see it as his job to argue for or against ending the receivership.

He said he was appointed to carry out the duties in the Receivership Order and “works at the pleasure of the Court.”

For Sale: Martha’s Vineyard property

While the broader receivership fight continues, the court also moved quickly on a requested property sale.

On Feb. 25, the receiver filed an expedited motion seeking the court’s approval to sell real and personal property at 10 Codman Spring Road, Edgartown, Mass., with a proposed closing date of March 19.

Judge Atchley set a fast briefing schedule, with responses due by March 5 and replies by March 10.

What’s Next

The court’s upcoming decisions will determine the scope and direction of the case:

• Whether the receivership remains in place or is modified/terminated as requested by the founders.

• Whether the receivership estate expands to include the seven additional entities identified by Farm Credit and supported by the receiver’s “single enterprise” analysis.

• Whether the court approves the proposed Martha’s Vineyard sale on the expedited timeline now set in early March.