Federal trustee asks for Northern Beef Packers to be liquidated
A federal trustee has asked a judge to convers the Northern Beef Packers’ bankruptcy into a Chapter 7 liquidation. The company has been trying to obtain post-petition financing so that it would hire an investment firm to pursue a sale of its Aberdeen, S.D. facility, reports the Associated Press.
Assistant U.S. trustee James Snyder said in a petition that he believes that Northern Beef Packers, which filed for Chapter 11 bankruptcy protection last month, is "administratively insolvent" based on company reports and statements.
"Based on currently available information, it appears the plant represents the only asset by which Debtor may generate funds to pay creditors," Snyder wrote.
Snyder said Northern Beef withdrew its financing plan and has not filed a replacement motion. The change from Chapter 11 protection is necessary to protect the interests of creditors and the estate and to prevent further delay and default, he said.
South Dakota Gov. Dennis Dougaard expressed hope that the company could find a buyer for the plant, which was completed in 2012 after a series of delays related to securing financing.
"I continue to hope that, through this process, a purchaser will be identified that will successfully operate this plant," Daugaard said in an emailed statement.
Source: AP
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