Call for Chapter 7 Liquidation of Northern Beef Packers28 August 2013
US - A request has been made to convert the Chapter 11 bankruptcy protection for Northern Beef Packers in South Dakota into a Chapter 7 liquidation.
The move has been made in a request by Assistant U.S. trustee James Snyder to a judge because according to reports he believes the company is administratively insolvent.
The company has been trying to draw up a financing plan to pursue the sale of the plant in Aberdeen, South Dakota.
But according to a report in the St Louis Post Despatch, Mr Snyder says the company withdrew its original financing plan and had not replaced it and a Chapter 7 liquidation was needed to protect creditors.
Work on the plant started in 2006, but the company slaughtered its first animal in 2012 and has since struggled to reach its production target of 1,500 head per day.
It is reported to have $138.8 million in liabilities and just $79.3 million in assets, according to court documents.
The plant has laid off most of its employees and halted production.
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