Uncle Nearest Faces $108 Million Lawsuit Over Alleged Loan Defaults

Uncle Nearest owners, Fawn and Keith Weaver, have since denied the accusations and called the lawsuit "salacious and inaccurate.”

Uncle Nearest Inc., a whiskey company founded in Shelbyville, Tennessee, has denied all accusations against its company after being hit with a multi-million dollar lawsuit from its lender, Farm Credit Mid-America.

Filed in the U.S. District Court’s Eastern Division, the lawsuit alleges that Uncle Nearest defaulted on more than $100 million in loans and misused collateral and loan proceeds. However, Uncle Nearest maintains that any company misconduct was the fault of a now-terminated CFO.

The suit claims the distillery, co-founded by Fawn and Keith Weaver in 2016, failed to uphold the terms of its loan agreement, including making timely principal and interest payments.

According to the lender, the company also used part of the loan to buy a $2 million home in Martha’s Vineyard. It allegedly sold off barrels—considered key collateral—to cover unrelated financial obligations.

“The collateral subject to the lender’s liens is in danger of being lost and/or materially injured or impaired to the extent a receiver is not appointed,” the lawsuit states, pushing for a court-appointed receiver to protect the lender’s interests.

“The enhanced value and stabilization from a professional, court-appointed receiver outweighs any potential harm.”

Farm Credit Mid-America further claims that Uncle Nearest sold off future revenue streams at steep discounts and failed to maintain the required net worth of $100 million in 2024. An internal review in January 2025 allegedly revealed the company overstated its borrowing base by around $21 million.

“Uncle Nearest has been in default under the loans since as early as Jan. 2, 2024, and has continued to incur further defaults over the last eighteen months,” the suit claims. One of the most recent breaches cited is the company’s failure to pay off its revolving loans by their maturity date of July 22, 2025.

The lender also noted that attempts to work out a resolution with Uncle Nearest were largely ignored.

The lawsuit pointed out, “From January 2024 through March 2025, the lender sent formal and informal notices of default, requests for updated information regarding its collateral, and requests for meetings. Unfortunately… these notices and requests failed to result in any resolution and were mainly met with extremely delayed responses,” the lawsuit states.

Ultimately, Farm Credit Mid-America is seeking a judgment of no less than $102 million from Uncle Nearest, plus accrued interest, legal fees, and any additional costs related to collection.

Fawn and Keith Weaver, the couple behind the popular Uncle Nearest whiskey brand and owners of a Martha’s Vineyard property, have responded to a lawsuit from their lender seeking to place their business into receivership.

In a court filing on August 3, the Weavers denied the claims brought by Farm Credit Mid-America, calling them “salacious and inaccurate.”

The Tennessee-based distillery pointed to alleged misconduct by a now-terminated chief financial officer, who they claim inflated barrel inventory values and triggered the dispute. Uncle Nearest says the lender was fully informed during restructuring discussions and even approved loan increases without verifying inventory figures.

The company added it made nearly $9 million in payments in 2024, followed by another $7.5 million this year after a restructuring agreement. As for the Martha’s Vineyard property, the Weavers argue the purchase was transparent and claim the lender failed to secure a legal claim to it.

A third-party investigation into the former CFO’s actions is ongoing.

The filing concluded, “Here, defendants acknowledge that the agreements at issue technically allow for a receiver to be appointed but given the circumstances, one should not be appointed here. Plaintiff was fully informed and aware of the circumstances that led to the technical default and was working side-by-side with defendants to find a resolution.”