Northern Beef Packers in Fresh Finance and Sale Bid10 September 2013
US - Troubled US meat processor, Northern Beef Packers, has called on the federal bankruptcy judge to allow the company to borrow money in a bid to finance an auction sale.
The plant based in Aberdeen South Dakota wants to be allowed to borrow $2.25 million from White Oak Global Advisors according to a report in the Aberdeen News.
The capital will go towards hiring investment banking firm Lincoln International to market and sell the processing plant.
A preliminary hearing is scheduled for Thursday.
The report says that Lincoln International would look for a ‘‘stalking horse’’ bid, in which one potential buyer makes an initial offer to set the floor for an auction that invites competitive bids.
In its petition filed last week, Northern Beef Packers said the plan offers the best chance to resume operations and restore jobs.
Northern Beef Packers opened the state-of-the-art processing plant in 2012 after years of delays. But its owners filed for Chapter 11 bankruptcy protection less than a year later.
If the company cannot come up with a financing package to sell the plant, the company could be forced into liquidation.
TheMeatSite News Desk