Northern Beef Packers’ state loan cancelledNorthern Beef Packers in Aberdeen, S.D., won’t receive a $5 million loan from the state Board of Economic Development.
By: Jonathan Knutson, Agweek
Northern Beef Packers in Aberdeen, S.D., won’t receive a $5 million loan from the state Board of Economic Development.
The board voted on Jan. 14 to cancel its loan commitment. The company, which filed for bankruptcy in July, had never received funding through the loan, Nathan Lukkes, deputy commissioner of the Governor’s Office of Economic Development, tells Agweek.
Northern Beef Packers originally received the commitment for $5 million in state funds on Jan. 28, 2010. Typically, the commitment is only for 12 months, Lukkes says.
Northern Beef Packers subsequently received several extensions on the $5 million commitment, the most recent in February 2013, he says.
The extensions, which are not uncommon in such cases, were approved because the company continued to make progress toward completion, Lukkes says.
But the situation changed after the February 2013 extension was approved, he says.
“Given the progression of the bankruptcy proceedings and the subsequent sale of the plant in December, GOED (Governor’s Office of Economic Development) deemed it prudent to bring the matter before the board to consider withdrawing the commitment,” he says.
Northern Beef Packers’ main creditor, California-based White Oak Global Advisors, bought the company late last year.