In Fresno, California, a federal judge has sanctioned a financial injection of $32 million to facilitate the harvest operations of the Assemi brothers' pistachio and almond farms, amid severe financial difficulties. The Assemis, recognized as prominent pistachio growers in the San Joaquin Valley, are currently grappling with substantial debt, amounting to hundreds of millions of dollars owed to various lenders. These financial obligations have prompted legal actions from entities such as Prudential Insurance Company of America and PGIM Real Estate Finance, seeking to recover $700 million, and U.S. Bank National Association, aiming to reclaim $72 million in unpaid loans.
The court's intervention came after these lenders advocated for the appointment of a receiver to safeguard the assets of the distressed farm. Consequently, U.S. District Court Judge Kirk E. Sherriff consented to the appointment of a receiver to manage the imminent harvest of the valuable crop.
The financial woes of the Assemi brothers, Farid, Farshid, and Darius, who oversee over 50,000 acres of pistachios and almonds, have been attributed to an unsuccessful expansion endeavor among other issues, leading to the depletion of the company's financial reserves. Judge Sherriff remarked on the consensus regarding the Assemis' financial state, stating, "I think everyone agrees that the defendants are out of money."
To support the harvest, Prudential Insurance has been approved to provide $32 million in funding, despite initial resistance from U.S. National Bank, which had negotiated a separate $20 million agreement with Maricopa Orchards, an entity associated with the Assemi brothers. The court has delineated the receiver's responsibilities to include inspection, monitoring, auditing, and observation of the farm's operations, as opposed to granting authority to sell property. Lance Miller of Pivot Management Group has been identified as the receiver, with a mandate to report back to the court by October 18.
Source: The Fresno Bee