Escrow fund debate holds up plant sale
Jan. 3, 2014
by Meat&Poultry Staff
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ABERDEEN, SC – White Oak Global Advisors filed a second escrow fund offer to set aside money to pay two Northern Beef Packers creditors, the Aberdeen News
reported Dec. 3.
White Oak is offering to put $4.35 million in an escrow account to pay whatever is owed to a contractor that did dirt work during construction of the now-shuttered beef processing facility. Northern Beef also owes back taxes to Brown County. White Oak and the contractor, Scott Olson Digging, disagree on how much is owed for the work and is a major stumbling block to finalizing the sale of the facility to White Oak, according to Aberdeen News.
In December, White Oak Global Advisors, an investment banking firm, submitted the winning bid for the processing plant. The bid included $4.8 million in cash to pay off creditors and a $39.5 million line of credit that White Oak says Northern Beef owes it. Court records show Northern Beef had $138.8 million in liabilities and just $79.3 million in assets.