Troubled whiskey brand Uncle Nearest is insolvent, and it will likely face foreclosure if the court hands control back to founder Fawn Weaver, according to the company’s court-appointed receiver.
The details were laid out in newly unsealed documents filed late Monday in federal court in Tennessee. Receiver Phillip Young said that if his receivership is ended by U.S. District Judge Charles E. Atchley on Feb. 9, when a hearing is scheduled on the matter, and Fawn and Keith Weaver regain control, “I believe that the company’s monthly losses would be approximately $2 million per month.”
The receiver said that since he gained control in September, he’s ratcheted losses down from about $1 million a month before the receivership to about $100,000 a month now, with Kentucky lender Farm Credit covering the ongoing loss. Farm Credit also agreed to foot the bill for $1.09 million to retire a warehouse lien on Uncle Nearest’s barrels of whiskey, Young said.
He said when he took over in September, Uncle Nearest was unable to cover its $450,000 payroll except with a loan from the payroll processing company, repaid by advances from Farm Credit…