Lenders seek control of Assemi family farming operation over millions in unpaid loans

The Assemi family — one of the San Joaquin Valley’s most prominent farming operators — owe more than $700 million in unpaid loans and are on the verge of being taken over by lenders, according to a recently filed federal lawsuit.

Prudential Insurance Company of America alleges in its breach of contract lawsuit that the Assemis have failed to pay their semi-annual payments on some loans and have defaulted on others. The lender also accuses the family, which primarily farms pistachios in the Valley, of defaulting on third-party loans, triggering an accelerated loan payment of $150 million.

Also named as a plaintiff is PGIM Real Estate Finance Holding Company.

Lawyers for the lenders are asking the court to order the repayment of more than $700 million in loans and for the appointment of a receiver to take possession of the property, pending the forthcoming foreclosure, according to the lawsuit.

Founded by brothers Farid, Farshid and Darius Assemi, the Fresno-based family’s farming business grew into an empire with more than 50,000 acres of pistachios and almonds.

Operating under the brand name Touchstone, the family ran a processing plant in the Tulare County community of Terra Bella where it produced pistachios for export and to be sold in the U.S.

As the company grew, it ran into intense competition from its biggest rival, Wonderful Pistachios & Almonds, the undisputed leader in the pistachio and almond industry.

The two sides battled in the field and in the courtroom. In December, a Fresno County jury awarded $26 million to the Assemi brothers farming company and nearly $12 million to Wonderful Pistachios & Almonds in a protracted breach of contract lawsuit.

Soon to follow was news that the company was attempting to sell its entire operation and exit the farming game. No buyers stepped forward as the company continued to struggle financially.

A lack of cash flow deepened the financial crisis facing the family. This time of year, most pistachios growers are preparing to harvest their trees. The Assemis were not.

According to the lawsuit, the Assemis told the lenders they could not afford to continue taking care of the trees and may be forced to “terminate, in whole or in part, its numerous employees onsite.”

The lenders, who have a huge stake in the property and the crop, stated in the lawsuit that they won’t let that happen.

“Plaintiff intends to provide additional funding to the appointed receiver to allow it to maintain and manage the property, including the trees and plants located thereon, and to complete the harvest of its crop,” according to the lawsuit.