NASHVILLE, Tenn. (WSMV) – Months after Tennessee whiskey brand Uncle Nearest was hit with a $108 million lawsuit for an alleged breach of loan agreements, a court has dismissed the CEO and co-founder’s attempt to file for bankruptcy, saying she lacks the authority to do so.
Uncle Nearest was hit with the federal lawsuit last August from Farm Credit Mid-America, which claimed that Uncle Nearest failed to fulfill its obligations to the lender. Farm Credit claims the brand failed to respond to requests for information and a resolution after defaulting on its loans.
The CEO and co-founder of the company, Fawn Weaver, filed for Chapter 11 bankruptcy on March 17. Two days later, Farm Credit and Phillip Young, Jr. — who was appointed last fall as the receiver for the company to oversee business operations while the lawsuit proceeds — filed motions to dismiss the claim. The same day, the bankruptcy court sided with the motion, saying Weaver lacks to the authority to file such a claim…