Less than month after a court-appointed receiver took over operations at Salyer American Fresh Foods, Monterey, Calif., the company wants the receiver ousted, claiming he fostered a hostile work environment and improperly seized company assets.
Steve Franson took over Salyer American in May after the company’s lenders, led by Bank of the West, filed suit claiming Salyer American defaulted on $35 million worth of loans.
Both parties are due in Monterey County Superior Court June 5, where Salyer American originally planned to back Franson’s confirmation. However, now, according to court documents, the company will oppose it and see if a judge will grant selection of a new receiver.
Salyer American’s lenders want Franson to keep his position, citing his extensive professional background and weakness of Salyer American’s arguments against Franson as primary reasons.
But, according to court documents, the lenders said they will find another receiver if the judge sides with Salyer American.