By Katie Northcott, News Director
Phillip G. Young, Jr., the court appointed receiver of the assets of Uncle Nearest, a whiskey distillery in Shelbyville, presented his first quarterly report on Wednesday, Oct. 1.
Young was appointed on Aug. 22 after Farm Credit Mid-America, a major investor in Uncle Nearest, sued the company for over $100 million in July. His latest report comes the day after the court ordered him to investigate whether 10 additional entities fall under his receivership. Young must serve the order to the entities by Oct. 14, and the entities must respond by Oct. 21.
The additional entities are Shelbyville Barrel House BBQ, LLC; Humble Baron, Inc.; Grant Sidney, Inc.; Uncle Nearest Spurs VI, LLC; Quill and Cask Owner, LLC; Nashwood, Inc.; Classic Hops Brewing Co.; Shelbyville Grand, LLC; Weaver Interwoven Family Foundation; and 4 Park Street, LLC.
Young expressed optimism in the quarterly report. He hopes to achieve the goals of the receivership by the end of the first quarter of 2026. Though it is an aggressive goal, he believes it is in the best interest of Uncle Nearest not to linger under the receivership.
“The Receiver believes that this receivership is progressing smoothly and that the opportunity for the Company’s successful emergence from receivership is good,” the quarterly report reads. “While challenges lie ahead, the outlook is positive.”
During the first five weeks of his receivership, Young began the process to obtain jurisdiction over Uncle Nearest’s assets in France, smoothed over relationships with shareholders and distributors, and developed a 13-week budget for operations of the company.
In developing the 13-week budget, Young implemented some budget cuts, including firing 12 employees. He believes that the company lacks the assets necessary to produce a cognac line and plans to liquidate the assets in France. He is exploring liquidating more of the company’s non-essential assets, including multiple properties in Bedford County, Tenn.
The budget showed that Uncle Nearest required $2.5 million to pay “delinquent, necessary operating expenses” and “professional fees associated with this receivership.”
“The Receiver reached a forbearance agreement with Farm Credit whereby Farm Credit agreed to fund the $2.5 million deficiency in exchange for the Receiver’s agreement to certain operational and financial benchmark,” the quarterly report said.
Though the report presented an optimistic outlook overall, Young expressed that he had encountered challenges in creating a reliable financial record for the company. He listed three key deficiencies in the company’s accounting records: non-reconciled balances create uncertainty about the accuracy of financial statements, unusual accounting entries are lacking proper documentation, improper revenue recognition practices may inflate the Company’s perceived financial performance.
In a document filed with the court on Aug. 3, Uncle Nearest CEO Fawn Weaver alleged that former Uncle Nearest CFO Mike Senzaki acted alone in overstating barrel inventory to Farm Credit Mid-America, which triggered the lawsuit. Weaver fired Senzaki before the lawsuit was filed.
Young has found that the allegations may be true. A substantial amount of financial records before 2024 were erased.
“According to multiple employees at the Company, those records were erased by a former employee immediately after termination,” the quarterly report said. “The Receiver is working to recover some or all of those financial records.”
Young has not found any current employees or members of management to be engaged in inappropriate financial practices.
The financial records provided in the quarterly report were not detailed. However, they show the company $1.7 million in debt to Farm Credit Mid-America. The financial information provided is attached below.
The full quarterly report:
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