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Bank Seeks $105 Million, Foreclosure on Some of John Vidovich's Ag Properties
SJV-Water
By SJV Water
Published 2 months ago on
March 19, 2025

A bank is suing large San Joaquin Valley grower John Vidovich for more than $105 million in allegedly defaulted loans. (GV Wire Composite/Paul Marshall)

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A bank is suing large San Joaquin Valley grower John Vidovich for more than $105 million in allegedly defaulted loans and is demanding the foreclosure and sale of large swaths of farmland, solar sites, a nut-hulling facility and the SunnyGem almond processing plant in Wasco.

Lois Henry

SJV Water

Affected lands could span Fresno, Kings, Tulare and Kern counties, according to three volumes of exhibits in the lawsuit, which was filed March 12 in Kern.

It’s unclear what a potential foreclosure or receivership could mean for SunnyGem, which employs more than 250 people in Wasco, according to its website.

The lawsuit, filed by U.S. National Bank Association, names Vidovich personally, as well as several Vidovich family members, Sandridge Partners, LP, SunnyGem, LLC and The Apricot Pit, LP, based in Sunnyvale.

News of the lawsuit rapidly made the rounds in agricultural and water circles  as Vidovich is a well-known, somewhat controversial figure in the San Joaquin Valley.

Neither Vidovich nor attorneys for U.S. National Bank responded to requests for comment.

Complaint Provides Look Into Complex Ag Dealings

The 41-page complaint  details a dizzying tangle of loans and lines of credit made to Sandridge Partners starting in 2006 and later to SunnyGem that were then modified multiple times over the years. The lawsuit breaks the complicated loan arrays into those for Sandridge and those for SunnyGem.

The terms of the package of Sandridge loans were most recently modified in January 2024 under an “Omnibus Modification Agreement” in which Vidovich and several family members personally guaranteed the loans, according to the complaint.

By April 2024, however, the loans are alleged to have been in default.

“On multiple occasions during 2024, Plaintiff provided notices to Sandridge and the Sandridge Guarantors regarding various Sandridge Events of Default under the Sandridge Loan Documents,” the complaint states.

In October of 2024, the repayment guarantees were reiterated under an “Omnibus Forbearance Agreement,” the complaint states. Such agreements relate to a lender’s temporary delay in enforcing its rights, such as foreclosure, in exchange for specific commitments from the borrower, including higher interest rates.

Those loans matured in December 2024 and were not repaid, according to the complaint.

“As of March 6, 2025, a total of $67,677,295.45, plus additional interest, fees, and costs, including legal fees, costs and other expenses incurred by Plaintiff (collectively, the ‘Sandridge Outstanding Balance’) was due under the Sandridge Loan Documents,” per the complaint.

Second Set of Loans Go Into Default in 2024

A second set of loans and lines of credits referred to as the “SunnyGem loans” went into default in May 2024, according to the complaint.

In October 2024, the bank issued a “Ninth Modification and Forbearance Agreement” in which it reduced SunnyGem’s $60 million revolving line of credit to $14.8 million and converted it to “non-revolving.” Vidovich and family members, again, personally guaranteed money owed under that line of credit as well as for a $22.5 million term loan, according to the complaint.

As of March 6, 2025, the SunnyGem debt was “$37,455,284.90, plus additional interest, fees, and costs, including legal fees, costs, and other expenses incurred by Plaintiff,” the complaint states.

A case management conference is set for Sept. 8.

Vidovich Lives in Los Altos, Farms in the Valley

Vidovich is a principal member of De Anza Properties, a development company in Los Altos.

He began buying farmland in the Valley in 1994 and has amassed 146,816 acres through Sandridge Partners, according to ParcelQuest. That’s down from what he had in 2021, particularly in Kern County where it appears he has sold off nearly 10,000 acres bringing his total current acreage to about 30,854.

The bulk of his land – about 102,000 acres – remains in Kings County.

Kings County properties owned by Sandridge Partners. Source: ParcelQuest
Kern County properties owned by Sandridge Partners. Source: ParcelQuest

 

A Controversial Figure

Vidovich has been a controversial figure in the valley since 2009 when he permanently sold State Water Project contract rights to 14,000 acre feet from the Dudley Ridge Water District in Kings County to a southern California district for $73 million. Vidovich has said in past interviews that he would not make that sale again if he had it to do over. But the move still rankles Kings County farmers.

His groundwater use has also cast Vidovich in a dubious spotlight after a Tulare County judge ordered him to cease extractions from a particular well field in 2014, according to a Fresno Bee article.

In 2017, Vidovich made news again for his part in a plan to take Kings River flood water out of the county — an effort that’s still ongoing. Though he has insisted this flood water isn’t being used, others consider it an attempted theft of the Kings River.

And he has been locked in a number of long-running legal battles over water with the giant J.G. Boswell Farming Company for several years, primarily over accusations from both sides over alleged groundwater sales out of Kings County.

Concerns grew to such a level that the Kings County Board of Supervisors enacted an ordinance in 2022 barring native groundwater from being moved out of the county.

Vidovich participates in several water boards, including the Buena Vista Water Storage District in Kern, where he served as president for many years and now holds a seat as vice president.

About the Author

CEO and editor Lois Henry has spent 30 years covering the San Joaquin Valley.

About SJV Water

SJV Water is an independent, nonprofit news site covering water in the San Joaquin Valley, www.sjvwater.org. Email us at sjvwater@sjvwater.org.

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