By Katie Northcott, News Director
On Monday, Dec. 22, Judge Charles Atchley, Jr. ordered that Uncle Nearest, a distillery in Shelbyville, would not be granted relief from its receivership.
Fawn and Keith Weaver, the owners of Uncle Nearest, requested the relief in November after the receiver submitted an optimistic first quarterly report in October.
Find reporting on that request here.
Atchley appointed Phillip Young, Jr. as the receiver after a creditor sued Uncle Nearest for over $100 million. Young has been managing Uncle Nearest’s operations as he tries to save Uncle Nearest from bankruptcy.
Find Young’s first quarterly report here.
Atchley denied the request on the basis that relief from the receivership would disrupt Young’s efforts. Atchley said adjudicating the creditor’s $100 million claim as well as other possible lawsuits that may arise would be distracting.
“The Court’s goal in enjoining other people and entities ‘from in any way disturbing,
interfering or affecting the Receivership Assets or the administration of the receivership estate’ was—like with the automatic stay under 11 U.S.C. § 362—to freeze the pieces on the board,” the ruling read.
Atchley said unfreezing the pieces would be detrimental to the interests of the company.
In a separate ruling, Atchley ordered the clerk to strike a response made by the Weavers on behalf of the board of Uncle Nearest. Atchley said that the filing was impermissible since under the terms of the receivership, the receiver speaks on behalf of the company.
Find both rulings below:
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