A federal judge granted a motion to appoint a receiver to steward over the Assemi family’s 50,000 acres of pistachios and almonds along the westside of the San Joaquin Valley in court Wednesday, citing cash flow issues.
The receiver, Lance Miller of Pivot Management Group, LLC, will be responsible for monitoring the remainder of the harvest, through the end of October – including auditing the Assemis’ use of funds during that time, according to an order from U.S. District Judge Kirk E. Sheriff.
Prudential Insurance – which filed a lawsuit against the Assemi family’s farming operations on Sept. 16, alleging breach of contract and a default on loans totaling over $700 million – has agreed to advance $32.4 million to the Assemis, administered by the receiver, to complete the pistachio and almond harvest this year.
Miller, in his role as receiver, will be compensated at $50,000 per month, as well as an additional $875 per hour for every hour over 60 hours each month, according to court documents.
The receivership comes in the wake of compounding legal woes for one of Fresno’s most prominent farming and development families, with two lawsuits filed by separate lenders in the prior week, seeking to reclaim cash from loans in default.
On Sept. 17, U.S. Bank, one of the lenders seeking recourse, alleged that the family’s pistachio company had just over $91,000 in the bank – not enough to pay workers for that week.
Without a receiver, U.S. Bank warned in their legal filings that they will “turn off the spigot” of cash collateral by directing customers to pay invoices directly to the bank. That would likely leave Touchstone, the Assemis’ pistachio company, unable to continue.
Darius Assemi, one of three brothers in partnership in the family’s farming operations, said in a statement on GV Wire, the website he publishes, that the family still hopes to refinance the loans and avoid bankruptcy.
A hearing has been set for Oct. 22 to decide whether the receivership should continue beyond Nov. 1.
