What's at stake:
A Fresno farming empire worth over $1 billion is in serious financial trouble, according to new federal court records.
In a move to protect its interests, Prudential, a major lender to the Assemi family’s sprawling San Joaquin Valley farming operation, asked a federal judge to appoint a receiver for more than 50,000 acres of distressed agricultural land owned by the family, according to court documents filed on Monday.
The Assemi family, led by brothers Farid, Darius, and Farshid, has defaulted on more than $700 million in loans this year, according to the filing, throwing the future of one of the region’s most prominent farming empires into doubt.
The petitions, filed in the U.S. District Court for the Eastern District of California, say the Assemi family’s farming operation is in a precarious position, unable to harvest its pistachio crops and at risk of laying off its workforce.
Darius Assemi could not be immediately reached for comment.
“Borrower has significant cash flow and liquidity issues that are likely to result in an inability to pay payroll and maintain a sufficient workforce necessary to manage the [farm] property and care for the trees and plants located on the property and pay the other expenses associated with such case,” the Prudential filing says.
The filing also notes that the family “does not have the resources to harvest the pistachio crops.”
The court documents detail several major loans made to the Assemi family’s farming operation. In 2022, Prudential provided a $550 million loan for property in west Fresno County, on which no payments had been made at the time of the filing, according to the filing. The company also entered into a $91 million loan agreement with the family for farmland in Kern and Tulare counties.
Additionally, U.S. Bank loaned the family at least $149 million in 2019, according to the filing. An $84 million loan from PGIM Real Estate Finance LLC, a Delaware limited liability company, was made in 2020.
The petitions cite causes of action for “breach of contract, appointment of receiver, accounting, and specific performance of right to possession clause” under various sections of the California Code of Civil Procedure for these loans.
The defaults stem from the brothers reported failure to pay the loans in full upon maturity, missed semi-annual payments due July 1 for all but one loan, and defaults on third-party loans totaling approximately $150 million that were subsequently accelerated. One Assemi loan has been in default since February, court records say, while the others have been in default since June.
As part of the process, Prudential, the investment bank, is asking the federal courts to force the Assemi family to relinquish possession of the property to a court-appointed receiver, turn over all relevant business records and documents, and advise the receiver on the nature and extent of insurance coverage on the property.
The filing represents a significant setback for one of the San Joaquin Valley’s most prominent farming families, whose holdings include vast pistachio and almond orchards. Monday’s filings come after a tough year for the Assemi family. Last year, they had legal troubles with Kevin Assemi, the son of Farid Assemi, as well as a major lawsuit with Stewart Resnick, America’s wealthiest farmer. The family tried to sell off its farm portfolio this February – the same month court filings claim they started defaulting on their farm loans.
The case could have far-reaching implications for the region’s agricultural economy and the many businesses and workers who depend on it.
This is the second major Fresno-area farming family to have serious financial issues in the last year. The former holdings of Prima Wawona, formerly owned by the Smittcamp family, went bankrupt after a private equity takeover. Another nut company, Trinitas, has gone bankrupt recently as well.
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