A bankruptcy judge approved last week the sale of the assets of Northern Beef Packers to White Oak Global Advisors for $44.3 million. The offer includes $4.8 million in cash and $39.5 million in debt forgiveness, reports the Wall Street Journal.
The only other bidder mentioned in the WSJ report was American Foods Group, which submitted a qualified offer of $12.7 million in cash. Northern Beef Packers filed for Chapter 11 bankruptcy in July with a plan to sell its assets, after suspending operations at its South Dakota meat packing plant. The company was not able to find a steady cattle supply and defaulted on its loan to White Oak in March of 2013.
With the support of White Oak, it decided to file for Chapter 11 bankruptcy and suspend operations. White Oak agreed to lend Northern Beef $2.25 million in bankruptcy financing to allow the company to execute this sale.
Source: Wall Street Journal