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Published August 07, 2013, 05:06 PM

Investment company says SD beef plant needs to be sold quickly

An investment company that loaned a troubled South Dakota beef plant $35 million last September says Northern Beef Packers has no cash and a quick sale is needed to preserve the value of the state-of-the-art facility.

By: Associated Press,

SIOUX FALLS, S.D. — An investment company that loaned a troubled South Dakota beef plant $35 million last September says Northern Beef Packers has no cash and a quick sale is needed to preserve the value of the state-of-the-art facility.

The plant filed for protection under Chapter 11 last month. The bankruptcy court in Sioux Falls will look at the company’s plan to obtain credit to move forward with a sale or restructuring during a Thursday morning hearing.

In a memo filed Wednesday, White Oak Global Advisors attorney Roger Damgaard says the plant is Northern Beef’s primary asset, and the company is in “dire need of funding to pay critical expenses.”

Since slaughtering its first animal in 2012, Northern Beef has struggled to find the operating funds to ramp up to full capacity.

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