Trustee Wants Chapter 7 Bankruptcy For Beef Plant
by Associated Press
August 27, 2013 3:19 PM
A federal trustee is asking a judge to convert a troubled South Dakota beef processing plant's bankruptcy to a Chapter 7 liquidation.
Assistant U.S. Trustee James Snyder says in a petition filed Tuesday that he believes that Northern Beef Packers is "administratively insolvent" based upon reports and statements from the company.
Northern Beef filed for Chapter 11 bankruptcy protection last month and had been trying to obtain post-petition financing so it could proceed with hiring an investment banking firm to pursue a sale of the plant.
Snyder says Northern Beef withdrew its financing plan and has not filed a replacement motion. He says the change from Chapter 11 protection is necessary to protect the interests of creditors and the estate and to prevent further delay and default.