This award-winning whiskey brand is selling off its Martha’s Vineyard property to survive a massive $108 million lawsuit

Less than 10 years after launching, award-winning whiskey brand Uncle Nearest is selling non-core business assets to stay afloat while battling receivership.

The company's largest lender, Farm Credit Mid-America, filed a $100 million lawsuit against Uncle Nearest in U.S. District Court for the Eastern District of Tennessee on July 28, claiming the company owed more than $108 million in various loans and interest payments.

By mid-August, the court placed Uncle Nearnest whiskey under a court-appointed receivership.

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Now, just three months after the lawsuit was filed and two months after the receivership was announced, the company is gearing up to sell off its non-core assets, including property in Martha's Vineyard, to stabilize its finances.

According to the Moore County Observer, an Oct. 1 court filing outlined that Receiver Phillip Young Jr. said some of the company's non-core assets, such as assets tied to a planned cognac business, would require $15-plus million to bring to market — something the company cannot afford.

Assets the company is preparing to sell off include holdings in French vineyards, a Cognac château and other real estate.

The outlet reports Farm Credit Mid-America agreed to invest $2.5 million in short-term lending to cover some outstanding bills and fees. The Moore County Observer reports that a 13-week budget suggests the company's revenues can cover its operating expenses.

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On Oct. 21, the company's CEO and founder, Fawn Weaver, filed a response opposing the receiver's request to bring an additional 10 businesses under the court's control, Black Enterprise reports .

In the filing, Weaver argues the assets in question are separate from Uncle Nearest and are not responsible for its debts.

Weaver referred to the move as a "smear campaign" last week at the Inc. 5000 Conference , specifically calling out the inclusion of a Martha's Vineyard property, which the Weavers had purchased.

"Martha's Vineyard was a smear campaign tactic," Weaver said at the conference, according to Black Enterprise .

"Their hope was that the judge would see it, would accept the smear, and would turn over the keys of my company to them. ... I'm from California, what I'm not going to do is buy a vacation home that's not on the water in a town that is not sunny nine months out of the year."

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