Date set for Northern Beef Packers auction
November 7, 2013
by Meat&Poultry Staff
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SIOUX FALLS, SD – An auction for the shuttered Northern Beef Packers facility will be Dec. 5 at the federal courthouse in Sioux Falls, the Aberdeen News reported. Judge Charles Nail will oversee the proceedings.
The opening bid for the plant is $12.75 million, and bids will be sought for the facility, property, machinery, equipment and supplies. Qualified bidders must be able to close the sale, and they must have 10 percent of the total available before Dec. 5, according to paperwork filed with the court. The bidder with the second highest bid will be the backup in case the top bidder can't complete the sale.
Northern Beef Packers filed for protection under Chapter 11 bankruptcy. Based on court documents, the plant is now facing $138.8 million in liabilities and has just $79.3 million in assets. The company also is the subject of an ongoing federal investigation into the firm's financial dealings and the federal EB-5 program which encourages foreign investment in exchange for qualifications to secure permanent residency.