Judge Denies Credit Request For Beef Plant
by Associated Press
August 09, 2013 10:13 AM
A bankruptcy judge has denied a South Dakota beef packing plant's request to obtain secured credit and has scheduled a final hearing in two weeks.
Judge Charles Nail says he'll also wait to rule on whether Northern Beef can hire investment banking firm Lincoln International to pursue a sale of the Aberdeen plant, which filed for Chapter 11 bankruptcy protection last month.
Lincoln says it will be looking for a "stalking horse" bid for Northern Beef, in which one potential buyer makes an initial offer to set the floor for an auction that invites competitive bids.
The new hearing is scheduled for Thursday, Aug. 22.
Since processing its first animal in 2012, Northern Beef has struggled to reach anywhere near its production target of 1,500 head per day.