HEADLINES VS. THE COURT RECORD
(Filed February 26, 2026)
Declaration of Fawn Weaver in Support of Motion to Reconsider addresses the central claims that generated public headlines in this case.
-
“Bank Claims $21 Million in Missing Barrels”
The barrels were never missing.
During Farm Credit’s October 2024 collateral inspection, certain barrels were not physically verified due to documentation and tripartite access limitations.
The barrels remained stored at Tennessee Distilling Group under the same designations and have continued aging — increasing in value with each passing year.
Any liability asserted under the Advanced Spirits forward purchase arrangement corresponds directly to approximately 25,000 barrels of aging whiskey inventory. Uncle Nearest bears the storage, insurance, and related costs and maintains those barrels on its balance sheet as inventory.
These barrels are in addition to the nearly 57,000 aged barrels Uncle Nearest independently owns.
-
“Bank Claims $102 Million Loan Is Undercollateralized”
The undercollateralization claim relies on borrowing base percentages and forced liquidation assumptions.
The Declaration states:
- Uncle Nearest owns 56,296 barrels (excluding the 25,000 Advanced Spirits barrels).
- Estimated fair value of owned barrels is approximately $81.2 million at going-concern pricing.
- A July 2025 Letter of Intent valued the Nearest Green Distillery property at $70.4 million.
The collateral analysis presented in support of receivership reflects liquidation framing — not enterprise value.
-
“Bank Claims 18 Months of Continuous Default”
From January 2024 through April 2025, Uncle Nearest paid $16,324,604.07 to Farm Credit in principal and interest.
Those payments occurred during the same period described in the bank’s lawsuit as being in continuous default, without distinguishing between payment defaults and covenant (paper) defaults.
-
“Receiver Claims Unsecured Debt Ballooned from $10 Million to Over $50 Million”
Following the CFO’s departure, approximately 400 vendors were contacted for written confirmation of balances.
Third-party confirmations identified approximately $10 million in unsecured trade payables.
Higher figures recently referenced by the Receiver included:
- Approximately $17 million labeled “UN Affiliates,” functioning as an internal placeholder rather than a presently due third-party obligation.
- A $20 million convertible instrument originally structured to convert to equity in 2030, later classified as present debt following receivership.
- Approximately $3.7 million reflected as owed to Grant Sidney where no loan exists.
- Additional amounts classified as debt that were paid off in early 2025, prior to receivership, or represent accounting entries that do not correspond to presently due third-party obligations.
As of January 18, 2026, the Receiver’s own accounts payable schedule reflected $13,886,897.
At the recent hearing, the Receiver admitted under oath that neither he nor his team had sent confirmation letters to creditors requesting verification of balances prior to increasing total unsecured debt calculations.
By contrast, the approximately $10 million figure was derived from third-party vendor confirmations.
-
“Receiver Claims Sales Have Been in Decline Since 2023”
Park Street case-sales data reflected approximately 40 percent year-over-year growth from 2023 to 2024.
From January through August 2025, Uncle Nearest outperformed the American whiskey category.
The Receiver was appointed August 24, 2025.
Beginning September 2025, performance shifted from outperformance to underperformance.
By February 2026, Nielsen data reflected a 47.2-point negative swing versus February 2025.
The decline occurred after receivership.
-
Liquidity Presentation Omitted Operating Context
Farm Credit cited a $261,000 cash balance as evidence of distress.
That week followed a $7.5 million payment to Farm Credit and coincided with payroll and vendor cycles.
The following week, only $3,366 was required to exceed the $1.5 million minimum liquidity threshold — which the Weavers infused.
The cited figure reflected a temporary operating trough, not sustained insolvency.
The Declaration presents what is reflected in sworn testimony, vendor confirmations, admitted exhibits, and operating records.
This case will be decided on evidence — not headlines.