ILWACO — Covid-19 concerns postpone hearing meant to give the creditors of Jessie’s Ilwaco Fish Company a chance to replace the firm overseeing the receivership of the seafood processor.

Jessie filed for receivership on Feb. 26, short changing several fishermen owed money by the company. Pacific County Superior Court Judge Donald Richter assigned Christopher Wain, owner of the Bellevue firm Turnford Restructuring Group, as receiver. Wain was recommended by Donald Alber, owner of Alber’s Seafood Inc., which bought Jessie’s in 2013.

But, one of Jessie’s largest creditors, GemCap Lending I, LLC, opposes Wain’s appointment and moved to have him replaced by Revitalization Partners, a firm out of Seattle. GemCap’s motion was supported by Jessie’s second largest creditor, Craft3.

All creditors are allowed to participate in the vote whether to appoint a new receiver. The court was looking at a tentative date of March 26, but will notify creditors by mail when a firm date is set. Creditors may also send a proxy to participate in the meeting.

UPDATE: Due to Covid-19 concerns, all civil matters in Pacific County Superior Court will be postponed until after April 30.

Debt to GemCap

In April 2017, Jessie’s borrowed $5 million from GemCap lending and pledged all the company’s assets as collateral. GemCap was not told Jessie’s would be put into receivership.

An affidavit of Richard Ellis, co-president of GemCap Lending filed on March 10, gave insight into Jessie’s finances. In the 10 days prior to filing for receivership, Jessie’s borrowed almost $500,000 from GemCap, Ellis said. And to get that money, Jessie’s may have lied about how much inventory it had, according to the affidavit.

At a scheduling hearing to discuss when to hold a creditors meeting to appoint a new receiver, Arnold Willig, GemCap’s attorney, argued GemCap was the largest creditor of Jessie’s and it was GemCap’s right to have a choice in the receiver.

The scheduling hearing was held on March 13 at the Pacific County Courthouse, 300 Memorial Drive, in front of Judge Heidi Heywood, Wahkiakum County District Court judge who filled in for Richter.

Willig referred to GemCap as the “lifeblood” of Jessie’s.

The attorney for Turnford, Faye Rasch, argued against the appointment of Revitalization Partners. The firm is large with many lawyers and employees, Rasch said. Wain’s operation is streamlined, with just one receiver and one lawyer, she said. And Wain is already working to sort out the company’s finances; replacing the receiver would drag out the process.

‘Fishermen are the lifeblood’

Florian Mumford, captain of F/V Dream, Jim Kary, owner of F/V The Beachcomer and Kary’s nephew Ross Kary, sat in the courtroom while the two attorneys argued. Referring to GemCap as the lifeblood of Jessie’s didn’t sit well with Ross Kary, who is working to get his uncle the money he is owed by Jessie’s.

“The fishermen are the lifeblood of the company,” Kary said.

The three men spoke with Rasch after the hearing, explaining the fish tickets given to them by Jessie’s showed the fishermen are owed more than what was reported in court documents. Rasch told the men to file a proof of claim form with the court.