Elverta, California, U.S.A.-primarily based Sterling Caviar has entered receivership, with lenders boasting the business owes them much more than USD 23 million (EUR 21.5 million).
The firm, which was acquired by Eugene Fernandez in Oct 2020 for USD 6.2 million (EUR 5.8 million) from Stolt-Nielsen by means of his holding enterprise Hyde Road Agricultural Associates, received a USD 14 million (EUR 12.9 million) bank loan from CapitalView Investment decision Companions and Hunter Road Companions to broaden its caviar operations at the former Lazy Q Fish Ranch in Dixon, California, U.S.A., in April 2020.
Fernandez told SeafoodSource at the time he wished to significantly ramp up output and distribution of U.S.-sourced caviar in the domestic sector and that the purchase of just one of the oldest and premier caviar producers in the U.S. would speed up that energy.
Nevertheless, court files clearly show CapitalView and Hunter requested Sterling be placed into receivership in January 2024 and that a decide in Solano County, California, granted that request shortly following, in accordance to the Sacramento Business Journal. The two private fairness companies declare Hyde Street ceased creating credit card debt payments in early 2023 and that they had considerations Sterling’s sturgeon – valued at USD 24 million (EUR 22.5 million) – have been not remaining correctly cared for.
“Ongoing economic troubles have remaining the fish not having sufficient feed or aeration, which means their survival is in jeopardy,” the lenders claimed in courtroom files, which stated the sturgeon had gone up to two weeks without staying fed.
In a reaction to the submitting, Fernandez disputed the allegation relating to mistreatment of its fish.
“I would never ever allow the enterprise to do just about anything to damage the fish or any other property of the firm,” Fernandez wrote. “I would only be harming myself.”
The creditors wrote they experienced had “significant worries about particular transfers built by the defendants and unexplained discrepancies in the economic reporting offered by the Hyde Road Entities.”
Fernandez unsuccessfully opposed the transfer to put Sterling into receivership, arguing Hyde Road had repaid USD 6.4 million (EUR 6 million) therefore considerably and that Sterling’s inventory and other belongings covered the remainder of the fantastic balance.
A separate creditor, Sachem Capital Corp., submitted a detect of default against Sterling for USD 3.15 million (EUR 2.95 million), with the company’s 26-acre headquarters and processing facility in Elverta outlined as collateral. Sachem has postponed a foreclosure motion although it functions with Sterling to solve the dispute.
On 29 April, the appointed receiver asked for extra …