Uncle Nearest, the fast-rising whiskey brand co-founded by a Black woman, Fawn Weaver, announced it had filed for Chapter 11 reorganization while simultaneously filing a defamation suit against its Kentucky lender, Farm Credit, accusing the bank of circulating false allegations intended to undercut the company’s reputation. 

The company’s statement said the lender spread claims of missing inventory, financial misconduct, and insolvency — charges Uncle Nearest says are untrue and damaging. 

Weaver told followers in an Instagram video that the move toward Chapter 11 would preserve operations while giving the company breathing room to resolve disputes. The CEO said the receivership ordered in the lender dispute has been dissolved, and that Uncle Nearest will continue normal distillery operations during reorganization. She also addressed the defamation suit in which her team accuses Farm Credit of knowingly circulating false information that struck at the brand’s credibility. 

The complaint centers on a $102 million lending facility; Uncle Nearest disclosed roughly $13.19 million in unsecured obligations while asserting an enterprise valuation near $529 million. The reorganization stay will pause most outside litigation while the bankruptcy court reviews assets, liabilities and the path forward — a familiar commercial-restructuring tool Uncle Nearest says will help it emerge stronger. Legal counsel for Uncle Nearest described the lender’s actions as an intentional effort to smear founders and disrupt the company’s stewardship of Nearest Green’s legacy. 

Bankruptcy courts will now examine the company’s filings, and the defamation suit will proceed alongside the restructuring — although many claims are subject to the automatic stay that Chapter 11 imposes. 

Chapter 11 is often a step toward reorganizing debt and continuing operations, but outcomes vary widely based on creditor negotiations, asset quality and litigation outcomes. For now, Weaver has asked the public and customers for patience and said she remains committed to Uncle Nearest’s mission to preserve the story of Nearest Green.