Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_24-cv-01455/USCOURTS-caed-1_24-cv-01455-2/pdf.json

Parties Involved:
ACAP Farms, LLC
Defendant
Assemi Brothers, LLC
Defendant
C & A Farms, LLC
Defendant
Cantua Orchards, LLC
Defendant
Copper Avenue Investments, LLC
Defendant
Federal Agricultural Mortgage Corporation
Plaintiff
Gradon Farms, LLC
Defendant
Lincoln Grantor Farms, LLC
Defendant
Maricopa Orchards, LLC
Defendant
Lance Miller
Receiver
Whitesbridge Farms, LLC
Defendant
Willow Avenue Investments, LLC
Defendant

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA, FRESNO DIVISION

FEDERAL AGRICULTURAL MORTGAGE 

CORPORATION,

Plaintiff,

v.

ASSEMI BROTHERS, LLC; MARICOPA 

ORCHARDS, LLC; C & A FARMS, LLC; 

WHITESBRIDGE FARMS, LLC; WILLOW 

AVENUE INVESTMENTS, LLC; LINCOLN 

GRANTOR FARMS, LLC; COPPER 

AVENUE INVESTMENTS, LLC; ACAP 

FARMS, LLC; CANTUA ORCHARDS, LLC; 

GRADON FARMS, LLC, 

Defendants.

Case No. 1:24-cv-01455-KES-SAB

ORDER APPOINTING RECEIVER AND 

FOR PRELIMINARY INJUNCTION

On November 27, 2024, Plaintiff Federal Agricultural Mortgage Corporation (“Farmer Mac” 

or “Plaintiff”) filed an Ex Parte Motion for Appointment of Receiver and for Preliminary Injunction.

Doc. 15 (“Motion”). The Court calendared the Motion for hearing on January 6, 2024, and set a 

deadline of January 2, 2024, for any opposition to be filed. Doc. 26. The Motion is unopposed and 

the Court is satisfied that all parties in interest have had sufficient notice of the Motion. 

Accordingly, the Motion is SUBMITTED without oral argument pursuant to Local Rule 230(g), and 

the hearing currently set for January 6, 2024, is VACATED. The Court issues the following written 

order.

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Upon due consideration of the Motion, the Complaint (defined below), the Declaration of 

Zachary Carpenter (the “Plaintiff Declaration”), the Declaration of receiver Lance Miller (the 

“Receiver Declaration”), the Court being advised that the relief granted herein has been agreed to 

by both Plaintiff and all Borrower Defendants (defined below) except for Borrower Defendant 

Aseemi Brothers, LLC,1and good cause appearing therefor, the Court hereby finds that:

A. The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1332(a)(1) 

because the amount in controversy exceeds $75,000 and the parties hereto are of diverse citizenship. 

Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b).

B. On November 27, 2024, Plaintiff filed a Complaint for Breach of Contract, 

Appointment of Receiver, Accounting and Specific Performance of Rents and Profits Clause; and 

Injunctive Relief (the “Complaint”) against the Borrower Defendants.

C. Lance Miller of Pivot Management Group, LLC (“Pivot Group”) is not interested in 

this action and is competent and qualified to act as receiver.

D. Appointment of a receiver is appropriate pursuant to Rule 66 of the Federal Rules of 

Civil Procedure, Rule 232 of the Local Rules of Practice for the United States District Court for the 

Eastern District of California (the “Local Rules”), and the Court’s inherent equitable power to order 

the appointment of a receiver under federal law. 

E. The appointment of a receiver is not intended to be, nor shall it be, an election of 

remedies by Plaintiff, and Plaintiff expressly reserves its rights and remedies against Defendants, 

the Receivership Property, and any and all persons or entities that have any obligations to Plaintiff 

under applicable law and the Loan Documents with respect to the debt owed to Plaintiff under the 

Loan Documents.

F. Good cause exists for the appointment of a receiver in order to preserve perishable 

agriculture and real property and to maximize the recovery to Plaintiff Farmer Mac through the 

1 Borrower Defendant Assemi Brothers LLC has not agreed to the relief set forth herein. However, 

Assemi Brothers LLC does not own any of the Collateral subject to this Order. Additionally, the 

Court provided two weeks for any defendant to file an opposition to the Motion, Doc. 26, and none 

were filed. The Court is satisfied that all parties in interest have had sufficient notice of the Motion.

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preservation, management and orderly sale of certain of the assets of Borrower Defendants Assemi 

Brothers, LLC, a California limited liability company (“Assemi Brothers”), Maricopa Orchards, 

LLC, a California limited liability company (“Maricopa”), C & A Farms, LLC, a California limited 

liability company (“C & A Farms”), Whitesbridge Farms, LLC, a California limited liability 

company (“Whitesbridge”), Willow Avenue Investments, LLC, a California limited liability 

company (“Willow Avenue”), Lincoln Grantor Farms, LLC, a California limited liability company 

(“Lincoln”), Copper Avenue Investments, LLC, a California limited liability company (“Copper 

Avenue”), ACAP Farms, LLC, a California limited liability company (“ACAP”), Cantua Orchards, 

LLC, a California limited liability company (“Cantua”), and Gradon Farms, LLC, a California 

limited liability company (“Gradon”, and collectively, the “Borrower Defendants”), and for the 

collection of obligations owed to Borrower Defendants on account of the Receivership Property (as 

defined below) owned by the Borrower Defendants.2

G. Good cause exists for the entry of a preliminary injunction restraining and enjoining 

the Borrower Defendants and their agents, affiliates, partners, property managers, employees, 

assignees, successors, representatives, and all persons acting under and/or in concert with them from 

committing or permitting waste of the Receivership Property, including any misuse of cash from 

the operations of Borrower Defendants that are part of the Receivership Property; from removing, 

transferring, encumbering, or otherwise disposing of the Receivership Property; and from 

interfering with the Receiver in the discharge of the Receiver’s duties. Plaintiff has established that: 

(i) as a result of the amounts due and owing under the Farmer Mac Loans, the defaults thereunder,

and the difficulty in curing any such defaults, Plaintiff is likely to succeed on the merits of its claim; 

(ii) Plaintiff is likely to suffer irreparable harm in the absence of an injunction; (iii) the balance of 

the equities is in Plaintiff’s favor; and (iv) when coupled with the appointment of a receiver, an 

injunction benefits the public interest because the Receiver needs to be able fulfill his duties and 

obligations without potentially disruptive interference.

2 Capitalized terms used herein but not defined herein shall have the meaning given them in the 

Complaint.

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H. Certain costs may be incurred by the Receiver (as defined below) in this action, in 

Case No. 1:24-cv-01102-KES-SAB or in other related cases where the Receiver has been or will be 

appointed as receiver, as well as expenses incurred in relation to real property and other collateral 

subject to liens held by various other lenders (together, the “Other Real Estate Lenders”), that are 

properly allocable in whole or in part to the Other Real Estate Lenders. Plaintiff and the Receiver 

have reached an agreement on the allocation of costs between it and the Other Real Estate Lenders. 

In the event of a dispute over any cost allocable to Plaintiff or the Other Real Estate Lenders, the 

Receiver shall consult with Plaintiff and the Other Real Estate Lenders in an effort to reach joint 

agreement on allocation, and to pay any such agreed allocated cost amount. Absent agreement, any 

dispute over which costs (or partial costs) may be paid by a receivership estate shall be determined 

by the Court, after notice and a hearing.

I. For all other costs borne by the Receiver that are properly allocable to real property 

or other collateral held by Other Real Estate Lenders (“Other Property”) or real property held by 

Defendants and related entities that are not subject to any lender’s mortgage or deed of trust (the 

“Free and Clear Properties”), all rights are reserved to the Receiver to seek payment from or 

surcharge against such entities or properties, with all defenses and rights by such entities (or their 

property) expressly reserved. 

J. Plaintiff has advised the Court that it has agreed to finance such amounts as are 

reasonably necessary to pay for ongoing operations on, and maintenance of, the Receivership 

Property in accordance with the budget, as may be amended by agreement between Plaintiff, 

Defendants and Receiver, or as otherwise ordered by the Court (the “Budget”) attached hereto as 

Exhibit A. The amounts funded under the Budget constitute loans by Plaintiff to Defendants that 

shall be administered by the Receiver. 

Based upon the foregoing, IT IS ORDERED:

I. GENERAL PROVISIONS

1. Lance Miller of Pivot Management Group, LLC (the “Receiver”),3 who the Court 

3 The Receiver shall charge the amounts set forth in the Miller Declaration for his services and 

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finds is qualified and independent, is hereby appointed as receiver and shall be vested with complete 

jurisdiction and sole control over all of the: (a) Receivership Property and the business operations 

related to the Receivership Property; and (b) any claims, demands, or causes of action of any kind, 

character or description, regardless of the legal principle or theory upon which the same may be 

based, whether known or unknown, liquidated or unliquidated, contingent or absolute, accrued or 

unaccrued, matured or unmatured, insured or uninsured, joint or several, determined or 

undetermined, determinable or otherwise, wherever located (collectively, the “Causes of Action”), 

to the extent that such Causes of Action constitute Receivership Property; provided, that, for the 

avoidance of doubt, this Order shall not authorize or obligate Receiver to take control of, oversee, 

operate, fund, or maintain any Other Property or the Free and Clear Properties, except as explicitly 

set forth herein. 

2. The Receiver is awarded exclusive possession and control over the “Receivership 

Property” defined as follows: 

a. The Real Property, as defined in the Complaint and specifically: 

(i) The property subject to any of: (1) that certain Amended and Restated 

Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, 

by C & A Farms, encumbering real property located in Fresno County, California as more 

particularly described therein and recorded as file no. 2023-0011222 in the Fresno County Recorder, 

Fresno County, California on February 8, 2023; (2) that certain Amended and Restated Deed of 

Trust, Security Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, by C 

& A Farms, encumbering real property located in Fresno County, California as more particularly 

described therein and recorded as file no. 2023-0011223 in the Fresno County Recorder, Fresno 

County, California on February 8, 2023; (3) that certain Amended and Restated Deed of Trust, 

Security Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, by Copper 

Avenue, ACAP, Lincoln, Gradon, and Cantua encumbering real property located in Kings County, 

California as more particularly described therein and recorded as document no. 2303339 in the 

expenses incurred, each of which is subject to annual adjustment upon notice to the parties.

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Kings County Recorder, Kings County, California on March 3, 2023; (4) that certain Amended and 

Restated Open-End Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing 

dated February 2, 2023, by Copper Avenue, ACAP, Lincoln, Gradon, and Cantua, encumbering real 

property located in Fresno County, California as more particularly described therein and recorded 

as file no. 2023-0011386 in the Fresno County Recorder, Fresno County, California on February 8, 

2023; (5) that certain Amended and Restated Deed of Trust, Security Agreement, Assignment of 

Rents and Fixture Filing dated February 2, 2023, by Copper Avenue, ACAP, Lincoln, Gradon, and 

Cantua, encumbering real property located in Kings County, California as more particularly 

described therein and recorded as document no. 2303340 in the Kings County Recorder, Kings 

County, California on March 3, 2023; (6) that certain Amended and Restated Deed of Trust, Security 

Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, by Copper Avenue, 

ACAP, Lincoln, Gradon, and Cantua, encumbering real property located in Fresno County, 

California as more particularly described therein and recorded as file no. 2023-0011359 in the 

Fresno County Recorder, Fresno County, California on February 8, 2023; (7) that certain Amended 

and Restated Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated 

February 2, 2023, by Maricopa, C & A Farms, and Willow, encumbering real property located in 

Kern County, California as more particularly described therein and recorded as document no. 

223016523 in the Kern County Official Records, Kern County, California on February 13, 2023; 

(8) that certain Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated 

February 2, 2023, by Copper, Lincoln, and ACAP, encumbering real property located in Kings 

County, California as more particularly described therein and recorded as document no. 2301891 in 

the Kings County Official Records, Kings County, California on February 7, 2023; (9) that certain 

Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, 

by C & A Farms, Cantua, and Gradon, encumbering real property located in Fresno County, 

California as more particularly described therein and recorded as file no. 2023-0010330 in the 

Fresno County Recorder, Fresno County, California on February 6, 2023; and (10) that certain Deed 

of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated February 2, 2023, by 

Maricopa, C & A Farms, and Willow, encumbering real property located in Kern County, California 

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as more particularly described therein and recorded as document no. 223013714 in the Kern County 

Official Records, Kern County, California on February 6, 2023 (the foregoing nos. (1)-(10), 

collectively, the “Deeds of Trust”), not limited to APNs: 

APNs:

KINGS COUNTY: FRESNO COUNTY: KERN COUNTY:

004-130-030

004-140-012

(Portion)

004-140-012

(Portion)

004-140-005

004-140-002

004-230-014

004-230-026

(Portion)

004-230-026

(Portion)

004-230-027

004-230-013

038-141-21S

040-020-18-S

464-20-07

464-020-08

464-020-09

464-020-12

464-020-13

464-020-15

464-020-16

464-020-19

464-020-25

464-020-26

464-020-28

464-020-29

464-020-30

464-020-31

464-020-34

464-020-35

464-020-36

464-020-37

464-060-17

477-021-09

220-170-01

220-170-02

220-170-07

220-110-87

220-110-10

220-130-02

220-170-08

220-170-09

220-170-10

220-170-11

220-170-31

220-170-32

295-040-30

295-040-31

239-150-11

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477-021-11

477-021-18

477-021-19

477-021-20

477-021-25

464-101-23

464-070-10

464-070-11

Along with all other property and fixtures associated with said APNs 

described in said Deeds of Trust.

b. Other Collateral

(i) In addition to the Real Property, pursuant to Section 19 of each of the 

Deeds of Trust, the Deeds of Trust “constitute a security agreement within the meaning of the 

Uniform Commercial Code as adopted by the State of California,” and provide that the Farmer Mac 

Loans are secured, pursuant to the recital portion of each of the Deeds of Trust, by certain other 

items of personal property collateral and fixtures, including but not limited to: all buildings, 

improvements, equipment, fixtures and permanent plantings affixed, attached to or incorporated in 

the Real Property, all water rights appurtenant to the Real Property (the “Water Rights”), whether 

such water rights are riparian, appropriative or otherwise, along with all ditch and ditch rights and 

shares of stock, licenses, permits and contracts evidencing such water or ditch rights appurtenant to 

the Real Property, and all wells, reservoirs, dams, embankment or fixtures located on the real 

Property, all windmills, pumps, irrigation, equipment, motors, engines, and devices of every kind 

associated with the Real Property (exclusive of the Water Rights, the “Personal Property”; and 

together with the Water Rights and the Real Property, the “Collateral”), and said interests perfected 

by UCC Financing Statements Filing Number 18-7631437101, and Filing Number 19-7741674006 

filed with the California Secretary of State, and Filing No. 2018-0011387-00 in Fresno County, 

California, Filing No. 2019-0123393 in Fresno County, California, and Filing No. 1917425, in 

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Kings County, California.

(ii) For the avoidance of doubt, the Collateral does not include: (a) crops 

or crop proceeds that are subject to the lien of U.S. Bank; or (b) equipment that is not (1) a fixture 

affixed to the real property or (2) wells, irrigation and drainage pumps, motors, pipes, sprinklers, 

drip line and emitters, filters, water measurement, meters, control structures, or other irrigation 

equipment or frost protection related equipment.

3. The Borrower Defendants and their affiliates performing services for or on behalf of 

Borrower Defendants shall: (a) make their respective files, books, records, pertinent electronic files, 

and personnel, including directors, officers, management, and employees, available to the Receiver, 

on reasonable advance notice, to assist the Receiver in the performance of his duties; and (b) 

promptly provide Receiver with copies of all mail, regular, overnight or express or personal delivery, 

addressed to any of the Borrower Defendants related to the Receivership Property.

4. In addition to the rights, powers, benefits, and authorities granted in the preceding 

paragraphs, the Receiver is hereby vested with complete and sole authority and jurisdiction over the 

Receivership Property to the maximum extent permitted by 28 U.S.C. §§ 754 and 959, Federal Rule 

of Civil Procedure 66, and this Court’s inherent powers, and is hereby empowered and permitted to 

take any and all actions necessary and proper to carry out the express provisions of this Order, 

including but not limited to the following rights, powers, benefits, and responsibilities:

a. To take immediate possession of, custody of, and control over all the 

Receivership Property;

b. To enter into any property where the Receivership Property may be located 

in order to take immediate possession of, custody of, and control over Receivership Property;

c. To manage, control, operate and maintain the Receivership Property 

including, without limitation, the continuation, renegotiation, resolution, or termination of any 

contract related to the Receivership Property; provided, however, that nothing in this Order 

authorizes the Receiver to terminate any well agreements, water supply agreements, access 

agreements, or similar agreements, or other contracts that, in each case, also explicitly benefit Other 

Property or Free and Clear Properties;

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d. Subject to further order of the Court, to abandon or sell Receivership Property 

as the Receiver may deem prudent outside of the ordinary course of the Borrower Defendants’ 

businesses.

i. All sales or transfers made by the Receiver shall be free of liens, 

claims, and encumbrances, with any such liens, claims and encumbrances attaching to the proceeds 

therefrom subject to further order of the Court; and

ii. The Receiver may abandon or sell Receivership Property outside of 

the ordinary course of the Borrower Defendants’ businesses by motion, and shall obtain such 

order(s) from the Court and shall provide no less than fourteen (14) days’ notice of such motion(s) 

to the Court and all parties in interest in this receivership, and the lack of any written objection by 

such parties in interest within the fourteen-day period shall be deemed consent to such use, 

abandonment, or sale;

e. To make a motion or application to the Court regarding instruction or 

clarification in connection with the powers and scope of the receivership, Receivership Property, 

and this Order, including but not limited to obtaining orders further instructing the Receiver or 

orders clarifying or expanding the scope of the receivership or the Receivership Property;

f. To demand, collect, sue for, and receive all receipts, rents, profits, monies, 

security deposits, advance deposits, funds, earnings, issues, income, and/or other revenues or 

payments arising from the Receivership Property, as a whole or as to any and all improvements 

thereon;

g. To take and receive possession of any money on deposit in any bank accounts 

and chattel paper of Borrower-Defendants, in either case that is Receivership Property. The Receiver 

shall have co-administrator status on Borrower-Defendants’ respective cash management systems 

and bank accounts and may continue to use and make payments through Borrower-Defendants’ 

respective cash management systems and bank accounts for a period beginning on the day of entry 

of this Order up to and including January 13, 2025.

h. To establish bank accounts at any bank the Receiver deems appropriate for 

the deposit of monies and funds collected and received in connection with his administration of the 

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receivership estate, including but not limited to any funds advanced by Plaintiff, provided that all 

funds on deposit are insured by an agency of the United States government;

i. To take possession of all proceeds of all Receivership Property and the 2025 

Crop (as defined below), as deemed appropriate by the Receiver, including, but not limited to, taking 

possession of any such Receivership Property in the possession or control of any other party after 

consulting with Plaintiff; provided, however, that nothing in this Order shall permit the Receiver to:

i. interfere with, terminate, or refuse to honor the existing well, water 

supply, access, and other agreements relating to water that benefit the collateral of any of the Other 

Real Estate Lenders or the Free and Clear Properties; or

ii. interfere with any Other Real Estate Lenders’ Permitted Actions (as 

defined below), absent further Order of the Court;

j. To immediately borrow from Plaintiff such funds as Receiver and Plaintiff 

deem necessary for the current operation of the receivership estate, to continue to borrow money 

from Plaintiff for the operation of the receivership estate as needed, from time-to-time, and to issue 

to Plaintiff from time-to-time Receiver’s Certificates or such other documents or instruments to 

evidence such borrowings as well as protective advances made by the Plaintiff following the 

commencement of this action but prior to the appointment of the Receiver, subject to Plaintiff’s sole 

right to decide whether or not to advance any or all funds requested by the Receiver, and to issue 

further Receiver’s Certificates as such funds may be reasonably necessary for the Receiver to fulfill 

his duties and as agreed upon in writing by Plaintiff, with such Receiver’s Certificates or such other 

documents or instruments to have liens against (i) the Receivership Property that are immediately 

senior in priority to the existing liens of Plaintiff,

4

and (ii) the crop to be grown on, and in 2025 

harvested from, the Receivership Property (the “2025 Crop”), which 2025 Crop would not exist but 

for the funding provided hereunder, that are senior to the liens of all other lienholders on the 2025 

Crop. With the exceptions of fees and expenses owing to the Receiver, Receiver’s Counsel, and the 

4 References to the liens of Plaintiff herein include those liens held by U.S. Bank National 

Association, as Custodian/Trustee for Farmer Mac.

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other professionals employed by the Receiver, such Receiver’s Certificates shall have seniority over 

all other claims against the receivership estate on a priority repayment basis. Any liability for such 

borrowings shall solely be the responsibility of the Borrower Defendants, and not the Receiver. 

After any Receiver’s Certificate, or such other documents or instruments, is issued, a copy of such 

shall be filed with the Court. The original instrument shall be delivered to Plaintiff to be filed and/or 

recorded in Plaintiff’s discretion, as applicable. Notwithstanding anything to the contrary, and with 

the exception of the 2025 Crop, the Receiver’s Certificates shall not create any lien on or otherwise 

encumber any property that is not Receivership Property or any property against which Plaintiff did 

not hold a perfected, first priority lien;

k. To execute and prepare all documents and to perform all acts, including 

entering into contracts and operating licenses, and signing checks or initiating and processing 

electronic funds transfers in the Receiver’s own name (solely in his capacity as receiver), which the 

Receiver reasonably believes are necessary to preserving, protecting, managing, controlling and/or 

liquidating the Receivership Property, including, but not limited to any Receivership Property now 

in the possession or control of any third party;

l. To compromise debts of the Borrower Defendants in connection with or 

related to the Receivership Property and to do all things and to incur the risks and obligations of 

similar businesses operating in accordance with reasonable agricultural and/or viticultural standards 

and practices, and no risk or obligation incurred by the Receiver shall be at the personal risk or 

obligation of the Receiver, but shall be the risk or obligation of the receivership estate;

m. To investigate, identify, pursue, and resolve, any and all claims or causes of 

action that constitute Receivership Property;

n. To take all reasonable actions to collect, including contacting account debtors 

and bringing and prosecuting actions, all accounts receivable of the Borrower Defendants relating 

to the Receivership Property, whether now existing or hereafter created, and to direct such account 

debtors to cease sending further accounts receivable payments to the Borrower Defendants or any 

other third party and to instruct such account debtors and/or any other third party to send any and 

all payments directly to the Receiver;

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o. To hire and terminate agents, employees, appraisers, guards, clerks, 

accountants, liquidators, auctioneers, attorneys, management companies, and consultants without 

cause, to administer the receivership estate, and to protect the Receivership Property as the Receiver 

deems reasonably necessary; to purchase insurance, materials, supplies and services and to pay 

therefore at the usual rate and prices out of funds that shall come into his possession; to pay the 

reasonable value of said services out of the proceeds of the estate or funds that come into his 

possession; and that no risk or obligation incurred by the Receiver shall be the personal risk or 

obligation of the Receiver, but shall be the risk or obligation of the receivership estate;

p. To employ, subject to Court approval, such brokers or agents as the Receiver 

determines appropriate in his business judgment to aid in the marketing or sale of Receivership 

Property undertaken pursuant to Paragraph 4(d)(i) and (ii) hereof; provided, (i) the Receiver shall 

consult with Plaintiff on the selection of any broker or agent for such marketing or sale process, and 

include Plaintiff when interviewing potential brokers and agents; (ii) any and all such appointments 

or engagements shall be subject to the prior written consent of Plaintiff (which written consent shall 

not be unreasonably withheld or delayed and which may be provided through counsel and by 

electronic mail); (iii) the Receiver shall provide Plaintiff all information reasonably requested by 

Plaintiff in connection with the marketing and sale of Receivership Property; and (iv) for the 

avoidance of doubt, (x) any such marketing or sale process may be independent of the Prudential 

Receivership and any other receivership in which Receiver is serving as receiver, and (y) the 

Receiver’s brokers or agents in this proceeding may be different than those from the Prudential 

Receivership and any other receivership in which the Receiver is serving as receiver;

q. To employ a law firm as Receiver’s legal counsel (“Receiver’s Counsel”) in 

this matter, as reasonably necessary to accomplish the purposes of this Order and pay the reasonable 

fees and expenses of such Receiver’s Counsel for services rendered in preparation of and during the 

receivership, as approved by the Court. Receiver’s Counsel shall be entitled to reimbursement of all 

reasonable costs and expenses incurred on behalf of the receivership estate and in preparing for the 

Receiver’s appointment. The attorneys’ fees and costs incurred by Receiver’s Counsel may be 

included in the administrative costs and expenses to be paid to the Receiver in accordance with 

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Paragraph 12 of this Order;

r. To institute ancillary proceedings in this Court, the State of California, or 

other states and countries, prosecute and tender all suits or insurance claims, and pursue all remedies 

available by law as is necessary to preserve and protect the Receivership Property and ensure 

compliance with the Receiver’s authority, and the Receiver may engage the services of legal counsel 

in furtherance of such actions. The Receiver may pay for such services from the funds of the 

receivership estate;

s. To exclude Borrower Defendants or anyone claiming under or through the 

Borrower Defendants who does not have a lease or rental agreement entitling them to possession of 

the Receivership Property, or any portion thereof;

t. To bring and prosecute all proper action for collection of payments, rent, and 

lease payments due, if any, on the Receivership Property, as well as necessary actions and 

proceedings for the removal of tenants or lessees in default for any rental or lease agreement, or any 

other persons, from the Receivership Property, to bring and prosecute all proper actions for the 

protection of the Receivership Property or recovery thereof;

u. To assume, extend, or modify any pre-receivership contracts or agreements, 

including solar purchase options and unexpired leases, relating solely to the Receivership Property 

and/or reject such contracts in the Receiver’s sole judgment and discretion;

v. To employ Pivot Group as Receiver’s financial advisor in this matter, as 

reasonably necessary to accomplish the purposes of this Order. Compensation to Pivot Group shall 

be based on the hourly rates and expenses as set forth in the Receiver Declaration, subject to annual 

adjustment upon notice to the parties. Pivot Group shall be entitled to reimbursement of all 

reasonable costs and expenses incurred on behalf of the receivership estate. The fees and costs 

incurred by Pivot Group may be included in the administrative costs and expenses to be paid to the 

Receiver in accordance with Paragraph 12 of this Order;

w. To analyze the books, records, pertinent electronic files, and files of Borrower 

Defendants and any of their affiliates performing services for or on behalf of Borrower Defendants, 

including bank accounts, accounting records, and software related thereto, to determine the sources 

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and uses of cash, accounts, and proceeds of the Receivership Property and to copy and/or map such 

books, records, pertinent electronic files, and files as Receiver deems appropriate; and

x. To post a sufficient bond or undertaking with the Court in the amount of 

$1,000,000.00, as required by L.R. 232(i).

5. If there is insufficient insurance coverage on the Receivership Property, it is hereby 

ordered that the Receiver shall have thirty (30) business days to procure said insurance on the 

Receivership Property, provided the Receiver has funds available to do so. The Receiver is acting 

solely in his capacity as Receiver and shall have no personal liability for claims against the Borrower 

Defendants, individually or collectively, or for failure to obtain insurance. With respect to any 

insurance coverage, the Receiver, and other parties with insurable interests, shall be named as 

additional insureds on the policies for the period that the Receiver shall be in possession of the 

Receivership Property. With respect to any property coverage in existence or obtained on or with 

respect to the Receivership Property, Plaintiff shall be named as the mortgagee and loss payee.

6. Upon presentation of a conformed copy of this Order to any third party, banks, or 

depositories owing performance of any obligation or duty to Borrower Defendants with respect to 

the Receivership Property, such third parties shall render any performance or duties with respect to 

the Receivership Property directly to the Receiver, and such copy may be presented to any 

recalcitrant third parties to advise the same of the Receiver’s appointment and obtain cooperation.

7. Receiver, as an officer of the Court, shall be entitled to the assistance of law 

enforcement officials when taking possession, or at any other time during the term of the 

receivership, if in the opinion of Receiver, such assistance is necessary to preserve the peace and 

protect the Receivership Property and assets, without further order from the Court.

8. Any securities or deposits that constitute Receivership Property and which tenants or 

other persons have paid to Borrower Defendants or their agents and which are not paid to the 

Receiver, and over which the Receiver has no control, shall be obligations of Borrower Defendants, 

and may not be refunded to the tenants by the Receiver.

///

///

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9. The Receiver shall be under no obligation to complete or file tax returns on behalf of 

Borrower Defendants for income or other taxes arising before the date of this Order. The Receiver 

shall otherwise comply with all applicable laws and regulations relating to tax-reporting 

requirements. The Receiver shall furnish Borrower Defendants with such access to books and 

records within the Receiver’s custody or control as reasonably may be necessary for Borrower 

Defendants to complete and file tax returns on their own behalf.

10. The Receiver shall not be entitled to utilize the tax identification numbers of any of 

the Borrower Defendants in connection with any powers exercised pursuant to this Order and shall 

obtain new tax identification numbers.

11. Any utility company providing services to real property subject to this Order, 

including gas, electricity, water, sewer, trash collection, telephone, cable, communications Wi-Fi, 

Internet, or similar services, shall be prohibited from discontinuing services to Receivership 

Property and prohibited from failing to comply with any request by the Receiver to, and are 

prohibited from refusing to, reinstitute service to the subject property based any non-payment by 

Borrower Defendants prior to the Receiver’s appointment by the Court based upon unpaid bills 

incurred by Borrower Defendants. Further, such utilities shall transfer any deposits held by the 

utility company solely on account of Receivership Property to the exclusive control of the Receiver 

and be prohibited from demanding that the Receiver deposit additional funds in advance to maintain 

or secure such services. The Receiver shall make commercially reasonable efforts to open new 

accounts under the name of the Receiver within 30 days of entry of this Order, and until such time 

as such new accounts are open the Receiver may continue to operate under Borrower Defendants’ 

accounts.

12. All proceeds arising from the Receivership Property shall be used to pay: (a) amounts 

owed to non-insider third parties arising in the ordinary course of business for operations conducted 

on or related to Receivership Property, as well as all amounts the Receiver determines, in his 

reasonable business judgment, are necessary to maintain, preserve, and care for Receivership 

Property; (b) the fees and costs owing to Receiver, Receiver’s Counsel, and Receiver’s other 

professionals, subject to and except as otherwise set forth below, and (c) any indemnification owing 

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to the Receiver pursuant to Paragraph 16 below in connection herewith (collectively, the 

“Administrative Claimants”), in each case prior to payment to Plaintiff. Plaintiff has agreed and 

there hereby is a carveout from Plaintiff’s interests in the Receivership Property sufficient to secure 

payment in full of all amounts owed or owing to the Administrative Claimants. The Receiver is 

acting solely in his capacity as Receiver and in no event shall have any personal liability for any 

debts or obligations incurred by or on behalf of Borrower Defendants.

II. RECEIVER’S FURTHER DUTIES

13. The Receiver shall have the following reporting requirements:

a. Monthly Reporting/Compensation Procedures:

i. Monthly Statements. On or before the 20th day of each month 

following the month for which compensation is sought, the Receiver and his professionals shall file 

and serve on the Plaintiff, the Defendants, and all parties receiving ECF notice (collectively, the 

“Notice Parties”) a statement detailing the fees and expenses incurred for the prior month (each, a 

“Monthly Statement”); provided, however, the parties may redact any privileged material or 

attorney work product from any invoices or time records submitted with the Monthly Statements. 

Each Monthly Statement shall identify the extent to which the fees and expenses incurred for the 

prior month exceed the estimated fees and expenses set forth in the Budget and an explanation for 

why the budget was exceeded.

ii. Interim Payment. Within three (3) business days of the filing of the 

Monthly Statement, the Receiver shall pay, without further order of the Court, one hundred percent 

(100%) of the fees and one hundred percent (100%) of the expenses requested in the Monthly 

Statement that are approved by the Receiver (each, an “Interim Payment”). An Interim Payment 

shall be deemed conditionally allowed by the Court until the Court reviews and allows such fees 

and expenses on a final basis pursuant to the Quarterly Fee Motion procedures described below. 

iii. Application of LR 232(g). The interim compensation procedures 

described above are not subject to the notice and hearing procedures of Local Rule 232(g).

///

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b. Quarterly Reporting/Compensation Procedures:

i. Quarterly Fee Motion. Approximately every three (3) months, the 

Receiver and his professionals shall file a motion that requests final allowance and approval of the 

fees and expenses requested in the Monthly Statements for the prior three-month period, including 

all Interim Payments (“Quarterly Fee Motion”) and set such Quarterly Fee Motion for hearing before 

the Court pursuant to Local Rule 232(g). The Quarterly Fee Motion shall be filed and served in the 

same manner as the Monthly Statements. The Court may vacate any hearing and take any Quarterly 

Fee Motion under submission at its discretion. 

ii. Objection Period. The Notice Parties shall have 14 days following the 

filing of a Quarterly Fee Motion (the “Objection Period”) to review the Quarterly Fee Motion.

iii. Notice of Objection. If any Notice Party wishes to object to the fees 

or expenses in a Quarterly Fee Motion, the objecting Notice Party must—within the Objection 

Period—serve (but not file with the Court) a “Notice of Objection” on the Receiver and the 

applicable professional to which the Quarterly Fee Motion relates. A Notice of Objection must state 

the nature of the objection with reasonable specificity and identify the amount of the fees or costs 

to which the objection is made. 

iv. Resolution of Notices of Objection. The parties shall attempt to 

resolve any such Notice of Objection consensually. If the parties are unable to reach a resolution 

within five (5) days after service of the Notice of Objection, unless otherwise extended by 

agreement, the objecting party may file a written objection with the Court. The Court will consider 

and dispose of any filed objections on a final basis at the hearing on the applicable Quarterly Fee 

Motion or after taking the matter under submission, and authorize the Receiver to pay the full, 

approved amount of the fees and/or expenses that remain unpaid. If the objection relates to whether 

a redacted time entry is privileged or attorney work product, the Court may review the unredacted 

time entries in camera to resolve the objection.

v. Refund of Disallowed Fees or Expenses. Any portion of an Interim 

Payment not ultimately allowed by the Court will be refunded by the relevant professional within 

five (5) business days of an order disallowing such fees or expenses on a final basis.

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c. Pursuant to 28 U.S.C. § 754, the Receiver shall, to the extent practicable, 

within ten (10) days following entry of this Order, file copies of the Complaint and of this Order 

with the Clerk of the District Court for every federal judicial district in which the Receiver has 

reason to believe Receivership Property may be found (the “Receivership Filings”). 

Notwithstanding the ten-day time limitation set forth in 28 U.S.C. § 754, the Receiver may apply to 

the Court for an extension of time within which to complete the Receivership Filings. Subject to the 

Court’s discretion, such applications shall be freely granted to enable the provisions of this Order to 

be carried out; and

d. The Receiver shall, when practicable, file in this action an inventory of all 

property of which he has taken possession pursuant to this Order and shall conduct periodic 

accountings thereafter;

14. The Receiver shall make advances to the Borrower Defendants pursuant to the 

Budget as determined by the Receiver in his reasonable discretion and as provided for herein. For 

the avoidance of doubt, notwithstanding whether the Receiver determines that additional funding is 

needed for the purposes set forth in the Budget, Plaintiff shall have no obligations to fund any 

additional amounts.

15. The scope of the Receiver’s duties to Plaintiff are solely as follows: (a) to preserve 

the Receivership Property and protect it from dissipation and diminution in value; (b) to conduct 

business and operations in connection with the Receivership Property, including the collection and 

disbursement of proceeds of Receivership Property; and (c) to assess whether a sale of the 

Receivership Property would maximize value, and, following that assessment and if appropriate in 

the Receiver’s reasonable judgment, implement an organized sale process of the Receivership 

Property, whether in whole or part, with any sale of Receivership Property outside of the ordinary 

court of business subject to the Court’s approval.

16. The Receiver shall be entitled, to the fullest extent of the law, to indemnification 

from the Borrower Defendants, and such Borrower Defendants shall hold the Receiver harmless 

from any liability, loss, or damage the Receiver may suffer as a result of claims, demands, costs or 

judgments against him arising out of the activities to be carried out pursuant to the authority and 

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obligations of his appointment pursuant to this Order or any supplemental Order, which 

indemnification and obligation to hold harmless shall be paid solely from the Receivership Property; 

provided however, the Receiver shall not be entitled to indemnification for willful misconduct, gross 

negligence, or fraud as determined by a final order of the Court. The carveout and charging lien 

provided for in Paragraph 12 above shall also apply to any indemnification obligations owed 

pursuant to this Paragraph.

17. Receiver shall reasonably cooperate and communicate with U.S. Bank, the Other 

Real Estate Lenders, the Borrower Defendants and other parties in interest with respect to his 

reporting obligations pursuant to the terms of this Order and shall provide any reports set forth in 

Paragraph 13 above to U.S. Bank, the Other Real Estate Lenders, and the Defendants at the same 

time that it provides such to Plaintiff and this Court and, upon request, other parties in interest. 

18. For the avoidance of doubt, no provision of this Order shall be interpreted to prohibit 

or interfere with Borrower Defendants’ right to seek protection under the United States Bankruptcy 

Code.

19. Except as specifically set forth herein, this Order shall not prejudice the rights of any 

Other Real Estate Lenders to seek any and all enforcement remedies or take other such actions, 

including but not limited to foreclosure or the seeking of the appointment of a receiver as to their 

respective interests in Other Property, excluding the Receivership Property and proceeds of 

Receivership Property (collectively, the “Permitted Actions”), and nothing in this Order shall be 

deemed to preclude the Permitted Actions or the ability of such other receiver to collect, hold, and 

disburse proceeds attributable to Other Property over which such receiver is appointed, in 

accordance with any order appointing such a receiver.

PRELIMINARY INJUNCTION IN AID OF THE RECEIVER

IT IS FURTHER ORDERED that, except by leave of the Court, Receiver’s express prior 

written consent, or as otherwise set forth herein, including Paragraph 19 above, during the pendency 

of the receivership ordered herein, Borrower Defendants and all of their customers, principals, 

investors, collectors, stockholders, members, managers, lessors, other creditors, judgment holders, 

and/or other persons, including those seeking to establish or enforce any claim, debt, right, lien, 

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and/or interest against Borrower Defendants or Receivership Property, or any of their subsidiaries 

or affiliates, and/or all others acting for or on behalf of such persons, attorneys, trustees, agents, 

sheriffs, constables, marshals, and/or any other officers and their deputies, and their respective 

attorneys, servants, agents, and/or employees, be and are hereby stayed from:

1. Interfering, hindering or molesting in any way the Receiver in the performance of 

the Receiver’s duties and other performance of any duties incidental thereto;

2. Transferring, directly or indirectly, any interest by sale, gift, pledge, grant of security 

interest, assignment or encumbrance in any manner the Receivership Property or proceeds thereof;

3. Diverting any water from any of the Receivership Property to or for the benefit of 

any non-Borrower Defendant entity, except to the extent that such diversion is made consistent with 

a valid water supply agreement or similar agreement between such party and Borrower Defendant;

4. Moving the physical location of Receivership Property from any location where 

Borrower Defendants are conducting business or storing the Receivership Property, or any proceeds 

and products thereof, from the business premises except at the direction of the Receiver;

5. Transferring, concealing, destroying, defacing, or altering any of Borrower 

Defendants’ books and records for the Receivership Property;

6. Demanding, collecting, receiving, or in any other way diverting or using any of the 

receipts, rents, issues, profits, and or proceeds emanating from the Receivership Property;

7. Causing any mail, express or overnight or personal delivery of Borrower Defendants 

in their capacity as the owner, manager or operator of the Receivership Property to be forwarded to 

any addresses other than the business address of each of the Borrower Defendants, or otherwise 

interfering with or intercepting any mail, express or overnight or personal delivery intended for 

Borrower Defendants in their capacity as the owner, manager or operator of the Receivership 

Property;

8. Failing to cooperate with or reasonably assist Receiver, as required by this Order, 

including promptly advising of the nature and extent of insurance coverage and contracts, or refusing 

to promptly turn over to the Receiver all contracts, monies, checks, or proceeds that constitute 

Receivership Property and/or failing to make available to the Receiver all files, pertinent electronic 

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files, books, and records of Borrower Defendants and their affiliates performing services for or on 

behalf of Borrower Defendants relating to the Receivership Property;

9. Terminating, modifying, or otherwise amending any contract or agreement with a 

third party that in any way relates to Receivership Property, including but not limited to Defendants’ 

vendors or employees; 

10. Plaintiff and its officers, employees, and agents and the Receiver shall have prompt 

access to all business premises of Borrower Defendants that are related to the Receivership Property 

and the books and records of the foregoing to enable Plaintiff and the Receiver to review and inspect 

the goods, farm products, inventory, and other Receivership Property for the purposes of accounting 

and appraisal. For the avoidance of doubt, except as specifically set forth herein, the foregoing 

Paragraphs 1-10 shall not prejudice U.S. Bank’s or any Other Real Estate Lenders’ rights to seek or 

take any and all Permitted Actions, and nothing in the foregoing Paragraphs 1-10 shall be deemed 

to preclude the Permitted Actions.

IT IS FURTHER ORDERED that except by leave of the Court, Receiver’s express prior 

written consent, or as otherwise set forth herein, including Paragraph 19 above, during the pendency 

of the receivership ordered herein, Borrower Defendants and all of their investors, shareholders, 

members, managers, collectors, lessors, customers, tenants, junior lien holders of the Receivership 

Property, and other persons seeking to establish or enforce any claim, right or interest against or on 

behalf of Borrower Defendants, and all others acting for or on behalf of such persons, including 

attorneys, trustees, agents, sheriffs, constables, marshals and other officers and their deputies, and 

their respective attorneys, agents, servants, and employees be and are hereby stayed from the 

following without further order of the Court:

1. Commencing, prosecuting, continuing or enforcing any suit or proceeding against 

Borrower Defendants, except as such actions may be filed to toll any applicable statutes of 

limitations, with respect to the Receivership Property;

2. Commencing, prosecuting, continuing or entering into any suit or proceeding in the 

name or on behalf of Borrower Defendants with respect to the Receivership Property;

3. Accelerating the due date of any obligation or claimed obligation in connection with, 

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enforcing any lien upon, or taking or attempting to take possession of, or retaining possession of, 

any Receivership Property or attempting to foreclose, forfeit, alter, or terminate any of Borrower 

Defendants’ interest in any Receivership Property, including, without limitation, the establishment, 

granting or perfection of any security interest, whether such acts are part of a judicial proceeding or 

otherwise with respect to the Receivership Property;

4. Using self-help or executing or issuing, or causing the execution or issuance of any 

court attachment, subpoena, replevin, execution, or other process for the purpose of impounding or 

taking possession of or interfering with, or creating or enforcing a lien upon any Receivership 

Property, wheresoever located; and

5. Doing any act or thing whatsoever to interfere with the Receiver taking control, 

possession, or management of the Receivership Property or any other property subject to this Order, 

or to in any way interfere with the Receiver, or to harass or interfere with the duties of the Receiver, 

or to interfere in any manner with the exclusive jurisdiction of the Court over the property and assets 

of Borrower Defendants. For the avoidance of doubt, except as specifically set for the herein, the 

foregoing Paragraphs 1-5 shall not prejudice U.S. Bank’s or any Other Real Estate Lenders’ rights 

to seek or take any and all Permitted Actions, and nothing in the foregoing Paragraphs 1-5 shall be 

deemed to preclude the Permitted Actions.

IT IS FURTHER ORDERED that upon entry of this Order, Plaintiff shall take all 

reasonable efforts to serve this Order promptly on all Borrower Defendants, U.S. Bank, and the 

Other Real Estate Lenders; provided, however, that any such parties that have appeared in this case 

and are receiving notices via the Court’s CM/ECF system shall be deemed to have been served a 

copy of this Order upon its entry by the Court.

IT IS SO ORDERED.

IT IS SO ORDERED.

Dated: January 3, 2025 

 UNITED STATES DISTRICT JUDGE

Case 1:24-cv-01455-KES-SAB Document 29 Filed 01/03/25 Page 23 of 27
Exhibit A 

Case 1:24-cv-01455-KES-SAB Document 29 Filed 01/03/25 Page 24 of 27
CONFIDENTIAL

Maricopa Orchards - DLM

Receivership Forecast - Conservative Summaries

12/12/2024

($000s, except acres)

Total Budget

Opex[1] Receiver Pro Fees

Lender Acres[2] Acre % Opex In/Out Acres Acre % Pro Fees Total

 

 

Farmer Mac 1,189 4.9% 3,830 In 1,189 4.9% 373 4,203 

 

 

 )

($000s, except acres)

Through Q1 2025

Opex[1] Receiver Pro Fees

Lender Acres[2] Acre % Opex In/Out Acres Acre % Pro Fees Total

 

 

Farmer Mac 1,189 4.9% 2,038 In 1,189 4.9% 204 2,241 

 

 

 

Notes

[1] Includes loan interest of $5.3M and $1.2M in the Total Budget and Through Q1, respectively

Nut harvest costs of $9.9M occur outside of this forecast period

[2] Planted acres only (source: Field Worksheet Copy 11.13.24)

Pivot Management Group, LLC 1 of 1 DRAFT - Subject to change

Case 1:24-cv-01455-KES-SAB Document 29 Filed 01/03/25 Page 25 of 27
Maricopa Orchards - DLMReceivership Forecast - Conservative Thru Q112/12/2024 2025 Crop Budget --->

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forec

$ thousands 11/8/24 11/15/24 11/22/24 11/29/24 12/6/24 12/13/24 12/20/24 12/27/24 1/3/25 1/10/Operating Disbursements

Labor - $ (245) $ (179) $ - $ (179) $ - $ (179) $ - $ - $ 

$ 

Lease Payments - - - - - - - - - 

 

CapEx - - - - - - - - - 

 

Property Tax & Land Base Charges - - (1,324) - - (3,335) - - - 

 

Growing (608) (837) (1,923) (1,102) (904) (904) (904) (904) (904) (

 

Harvest - - - - - - - - - 

 

Overhead (243) (243) (243) (243) (50) (50) (50) (50) (50) 

 

Contract Farming Deposit - - - - (1,114) - - - - 

 

Miscellaneous (2) (6) (28) (12) (18) (18) (18) (18) (18) 

 

Past Due A/P - - - - (518) (505) (483) (480) (378) 

 

[1] Operating Disbursements (852) $ (1,331) $ (3,697) $ (1,357) $ (2,782) $ (4,811) $ (1,633) $ (1,452) $ (1,349) $ (

$ 

Non-Operating Disbursements

Receiver / Pivot Fees (130) $ (130) $ (130) $ (105) $ (105) $ (137) $ (83) $ (83) $ (91) $ 

$ 

Receiver Legal Fees & Claims Agent (113) (113) (113) (113) (113) (113) (55) (55) (60) 

 

Lender Legal Fees (132) (132) (132) (132) (113) (113) (113) (103) (103) 

 

Investment Banker (34) (34) (34) (34) (34) (34) (34) (34) (34) 

 

Retention Plan - - - - - - - - - 

 

Non-Operating Disbursements (409) $ (409) $ (409) $ (384) $ (365) $ (397) $ (284) $ (274) $ (288) $ 

$ 

Debt Related Activity

Receivership Loan Interest (129) $ - $ - $ - $ (153) $ - $ - $ - $ (230) $ 

$ 

Loan 2 Draw/(Repayment) 20,839 1,740 4,105 1,741 3,300 5,208 1,917 1,726 1,867 

 

Loan 1 Draw/(Repayment) (19,409) - - - - - - - - 

 

Principal - - - - - - - - - 

 

Debt Related Activity 1,302 $ 1,740 $ 4,105 $ 1,741 $ 3,147 $ 5,208 $ 1,917 $ 1,726 $ 1,637 $ 

$ 

Net Cash Flow $ 0 41 $ 0 $ (0) $ - $ (0) $ - $ 0 $ - $ 

$ 

Beginning Cash 2,500 2,459 2,500 2,500 2,500 2,500 2,500 2,500 2,500 

 

Ending Cash $ 2,500 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 

$ 

[2] Less: Min Cash (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (

 

Ending Net Cash $ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

Debt Roll Forward

Loan 1 Beg. Balance 19,409 $ - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

[3] Draw/(Repayment) (19,409) - - - - - - - - 

 

Loan 1 End. Balance - $ - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

Loan 2 Beg. Balance - $ 20,839 $ 22,579 $ 26,684 $ 28,425 $ 31,725 $ 36,933 $ 38,851 $ 40,577 $ 4

$ 

[4] Draw/(Repayment) 20,839 1,740 4,105 1,741 3,300 5,208 1,917 1,726 1,867 

 

Loan 2 End. Balance 20,839 $ 22,579 $ 26,684 $ 28,425 $ 31,725 $ 36,933 $ 38,851 $ 40,577 $ 42,444 $ 4

$ 

Notes

[1] Cash flows reflect weekly funding requirements, which are cumulative. Thus, if a party joins the receivership after the initial week, 

they are still responsible for funding the previous periods, less any amounts paid directly (i.e. property taxes).

[2] Minimum cash reserve of $2.5M includes amounts for Payroll and Working Capital[3] Reflects amount used of initial receiver funding[4] Includes roll-up of Loan 1 balance

Pivot Management Group, LLC 1 of 2 

Case 1:24-cv-01455-KES-SAB Document 29 Filed 01/03/25 Page 26 of 27
Maricopa Orchards - DLMReceivership Forecast - Conservative Thru Q112/12/2024$ thousandsOperating Disbursements

LaborLease PaymentsCapExProperty Tax & Land Base ChargesGrowingHarvestOverheadContract Farming DepositMiscellaneousPast Due A/P

[1] Operating Disbursements

Non-Operating Disbursements

Receiver / Pivot FeesReceiver Legal Fees & Claims AgentLender Legal FeesInvestment BankerRetention PlanNon-Operating Disbursements

Debt Related Activity

Receivership Loan InterestLoan 2 Draw/(Repayment)Loan 1 Draw/(Repayment)PrincipalDebt Related Activity

Net Cash FlowBeginning CashEnding Cash

[2] Less: Min Cash

Ending Net CashDebt Roll Forward

Loan 1 Beg. Balance

[3] Draw/(Repayment)

Loan 1 End. Balance

Loan 2 Beg. Balance

[4] Draw/(Repayment)

Loan 2 End. Balance

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

1/31/25 2/7/25 2/14/25 2/21/25 2/28/25 3/7/25 3/14/25 3/21/25 3/28/25 T

$ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

 - - - - - - - - - 

 (368) - - - (507) (507) - - - 

 - - - - - - - - - 

 (1,438) (1,370) (1,438) (1,438) (1,438) (1,396) (1,396) (1,396) (1,396) 

 - - - - - - - - - 

 (10) (50) (10) (10) (10) (10) (10) (10) (10) 

 - - - - - - - - - 

 (29) (27) (29) (29) (29) (28) (28) (28) (28) 

 (145) (183) (140) (140) (140) (140) (140) (132) (123) 

$ (1,990) (1,630) $ (1,617) $ (1,617) $ (2,124) $ (2,081) $ (1,574) $ (1,566) $ (1,556) $ 

$ 

$ (86) (128) $ (86) $ (86) $ (86) $ (86) $ (86) $ (86) $ (86) $ 

$ 

 (60) (60) (60) (60) (60) (60) (60) (60) (60) 

 (103) (103) (103) (103) (103) (103) (103) (103) (103) 

 (9) (9) (9) (9) (9) (9) (9) (9) (9) 

 - - - - - - - - - 

$ (257) (300) $ (257) $ (257) $ (257) $ (257) $ (257) $ (257) $ (257) $ 

$ 

$ (362) - $ - $ - $ - $ (348) $ - $ - $ - $ 

$ 

 2,609 1,930 1,874 1,874 2,381 2,687 1,831 1,823 1,813 

 - - - - - - - - - 

 - - - - - - - - - 

$ 2,247 1,930 $ 1,874 $ 1,874 $ 2,381 $ 2,338 $ 1,831 $ 1,823 $ 1,813 $ 

$ 

$ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 

$ 2,500 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 

$ 

 (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500)

$ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

 - - - - - - - - - 

$ - - $ - $ - $ - $ - $ - $ - $ - $ 

$ 

$ 50,404 48,474 $ 53,013 $ 54,887 $ 56,761 $ 59,143 $ 61,829 $ 63,660 $ 65,483 $ 

$ 

 2,609 1,930 1,874 1,874 2,381 2,687 1,831 1,823 1,813 

$ 53,013 50,404 $ 54,887 $ 56,761 $ 59,143 $ 61,829 $ 63,660 $ 65,483 $ 67,297 $ 

$ 

Notes

[1] Cash flows reflect weekly funding requirements, which are cumulative. Thus, if a party joins the receivership after the initial week, 

they are still responsible for funding the previous periods, less any amounts paid directly (i.e. property taxes).

[2] Minimum cash reserve of $2.5M includes amounts for Payroll and Working Capital[3] Reflects amount used of initial receiver funding[4] Includes roll-up of Loan 1 balance

Pivot Management Group, LLC 2 of 2 

Case 1:24-cv-01455-KES-SAB Document 29 Filed 01/03/25 Page 27 of 27