Assemis ‘are out of money,’ judge says. Receiver appointed to manage farm operation

A federal judge in Fresno approved a $32 million lifeline for the harvest of the financially troubled Assemi brothers pistachios and almond farms.

One of the largest pistachio growers in the San Joaquin Valley in California, the Assemis have fallen into deep debt, owing hundreds of millions of dollars to several lenders who have filed legal action to try and get their money back.

A week ago, Prudential Insurance Company of America and PGIM Real Estate Finance filed a breach of contract lawsuit to recoup $700 million from the Fresno County pistachio farmers. A day later, U.S. Bank National Association also sought the courts help to get back $72 million in unpaid loans.

The lenders urged the court to appoint a receiver to take over the failing farm and protect its assets.

On Wednesday, U.S. District Court Judge Kirk E. Sherriff approved the appointment of a receiver to oversee the harvest of a multi-million dollar crop.

The Assemi brothers, Farid, Farshid and Darius, control more than 50,000 acres of pistachios and almonds, but a failed expansion project along with other factors have drained the company’s finances.

“I think everyone is in agreement that the defendants are out of money,” Sherriff said.

Harvest funding for Assemis from Prudential

The judge appointed a receiver to handle the harvest and approved $32 million in funding from Prudential Insurance to cover the costs.

Lawyers for U.S. National Bank initially opposed Prudential’s offer, saying it had already negotiated a $20 million deal with Maricopa Orchards, an Assemi brothers company.

But Michael Nadel, the attorney for the Assemis, argued $20 million was not enough to complete the harvest.

In a motion to the court, Nadel was also successful in limiting the role of the receiver. Rather than giving the receiver broad authority, including to sell property, they will be tasked to “inspect, monitor, audit, and observe the Farming Defendants’ operations,” according to the court order.

The Prudential funds will be administered by the receiver, who is identified in court records as Lance Miller of Pivot Management Group.

The judge ordered the receiver to file a report to the court on Oct. 18.

This story was originally published September 26, 2024, 7:00 AM.