One of Uncle Nearest’s assets is up for sale.

The whiskey brand is awaiting a decision from Judge Charles E. Atchley Jr., who will determine whether the company’s receivership will remain in place or be expanded. As AFROTECH™ previously reported, the whiskey brand, which once made headlines for surpassing a $1 billion valuation, defaulted on more than $108 million in loans from its lender, Farm Credit Mid-America.

In the latest update, receiver Phillip G. Young Jr. — who oversees Uncle Nearest’s assets, including its distillery in Shelbyville, real estate holdings, intellectual property, affiliated ventures, and related entities — listed the business’s Martha’s Vineyard property for sale, according to The Spirits Business. Farm Credit Mid-America claims that Uncle Nearest borrowed $2.3 million for the property, which was purchased through a separate LLC and mortgaged to another lender, notes the outlet. This move violated the loan agreements.

The property was listed for $2.59 million by Young on Jan. 26, reports The Spirits Business. A full-price offer was received Feb. 18, along with two backup offers, also at full asking price.

The property was said to be used for Uncle Nearest’s brand relationship strategy, including hosting private, invitation-only gatherings to cultivate distributor and industry relationships, according to a court transcript.

That transcript also mentioned that Keith Weaver is listed as the buyer. It claims that Farm Credit was informed that Uncle Nearest would not be named as an owner of the property at the time of sale.

“In fact, Exhibit B, a copy of the MV Property Contract clearly showing Keith Weaver as the purchaser, was provided to Jonathan Boyce at Farm Credit by email on February 23, 2023, more than one month prior to the scheduled closing of the sale. Exhibit B further provides email correspondence between the Company and Farm Credit confirming receipt of those documents and coordination of site visits to the MV Property by Farm Credit officers in 2023,” the court transcript reads.

“The MV Property Contract was ultimately assigned to UN House MV, LLC, which is wholly-owned by Keith Weaver, and purchased with loan proceeds obtained from Farm Credit pursuant to Amendment No. 4 of the Credit Agreement.1 Farm Credit was fully aware of the purchase using proceeds from its loans and purposefully opted to take no security interest in the MV Property,” the transcript continues.

The Martha’s Vineyard property is expected to close on March 19, per The Spirit Business. Young has asked the court to expedite approval of the deal, the outlet reported.

Furthermore, the Moore County Observer reports that in a post-hearing briefing, Young also pushed to expand the receivership to include the following:
• 4 Front Street LLC
• Grant Sidney Inc.
• Humble Baron Inc.
• Nashwood Inc.
• Quill & Cask Owner LLC
• Shelbyville Barrel House BBQ LLC
• Shelbyville Grand LLC

According to the outlet, Young states that “almost 500 cash transactions” were found between Uncle Nearest and the aforementioned companies in addition to more non-cash transfers. He argued that this makes a strong case for why the receivership should be expanded, claiming that the businesses operated as a unified operation, per the outlet.