A federal judge overseeing the receivership of financially troubled Nathan Green Distillery Inc. is preparing to approve sale of property on Martha's Vineyard that is associated with the distillery. The motion is opposed by Fawn and Keith Weaver, founders of the distillery, who say it is essential for marketing Uncle Nearest whiskey.

Before he can order the sale of the property, which is about 1,180 miles from the distillery itself, however, he must obtain an appraisal. Yesterday he ordered the receiver to submit a list of five proposed appraisers to the court, the Weavers and the creditor, Farm Credit Mid-America to file notice of any objections they have to the qualifications and/or disinterestedness of any of the appraisers.

Uncle Nearest is one of the more amazing success stories in the recent history of the bev/al industry. Nearest Green was a slave who taught Jack Daniel the art of distilling and is pictured sitting at Daniel's side in a photo of Daniel's and his distillery workers. The whiskey bearing his name is the most awarded bourbon and American whiskey around the world.

The sale of the Martha's Vineyard property is opposed by the Weavers who argue the price is insufficient, that a sale will damage the "enterprise value" of the business, but the Weavers also admit the only value of the Martha's Vineyard Property is for marketing and advertising purposes and they concede that otherwise it is a monthly cash drain on the business.

But the receiver, who has told both the court and the shareholders that the company is insolvent, and was unable to make payroll without additional loans from Farm Credit, said he believes the only path forward for the company is the sale of its assets to a third party.

"Since this property was not income producing, not geographically related to Uncle Nearest’s operations, and not historically tied to Uncle Nearest’s origins, Arlington Capital suggested that the Receiver attempt to sell this property separately. Indeed, none of the potential purchasers of the business assets have inquired about purchasing the Martha’s Vineyard Property, which is well known to be affiliated with Uncle Nearest," the receiver told the court, adding:

"Therefore, the advice of professionals and the marketplace have confirmed that the Martha’s Vineyard Property is not critical to the “enterprise value” of Uncle Nearest; it should be sold separately."

The Weavers also contended that proceeds of the sale should not go to Farm Credit. "This argument is particularly perplexing as the Weaver Parties have admitted throughout these proceedings that the Martha’s Vineyard Property was directly purchased using the proceeds from Farm Credit’s loans," the receiver said.

Neighbors to the property in Edgartown have complain the the property, which hosted gospel brunches and cocktail hours, was a commercial venture and not a residence.