Setton Farms, already one of the largest pistachio producers in the nation, is closing in on a deal that would expand its operations in Tulare County.
Setton Farms has placed a bid in bankruptcy court for the Touchstone Pistachio processing plant in Terra Bella, which is currently owned by the Assemi family in Fresno.
The backstory: The Assemi family has allegedly defaulted on over $705 million in loans to Prudential and U.S. Bank for its farming operations throughout the Central Valley.
- U.S. District Court Judge Kirk Sherriff appointed a receiver to manage over 50,000 acres of distressed Assemi farmland last year.
- Sheriff also ruled at the time that the Assemi family faces significant cash flow issues and does not have the means necessary to care for its land. U.S. Bank also claimed in a lawsuit against the family that Touchstone only had around $91,000 left in the bank in September.
The big picture: Setton Farms reached an agreement with David Stapleton, the receiver who is managing the Assemi’s farmland, on Feb. 28 on a bid for the 80-acre Touchstone processing plant.
- Setton’s bid totals $30.5 million for the 78-acre piece of land that holds the Touchstone processing plant and a pistachio orchard.
- Setton made the bid under its Zamora Pistachio, LLC business, which operates a pistachio plant in Yolo County.
- The bid is positioned as a stalking horse purchaser, meaning it has been set at the minimum price, allowing other potential buyers to jump in.
State of play: The Terra Bella plant itself was at the center of the fight between the Assemi family and The Wonderful Company, owned by billionaire Stewart Resnick.
- U.S. Bank alleged in its lawsuit that the Assemis launched a secret plan – which they called Project X – to push out Resnick from the region. The Assemi family allegedly took out a $50 million loan from Prudential through its company Maricopa and then loaned that money to touchstone. U.S. Bank said it never gave its consent for any such loans.
What we’re watching: The liquidation auction for the Touchstone plant is scheduled for April 17 and will be held in Fresno.
