SIOUX FALLS, S.D. (AP) — A bankruptcy judge is allowing an idled South Dakota beef packing plant to employ an investment banking firm to pursue a sale.
Judge Charles Nail on Monday approved Northern Beef Packers' hiring of Lincoln International, which will seek a "stalking horse" bid in which one potential buyer makes an initial offer to set the floor for an auction.
Northern Beef Packers opened its $109 million state-of-the-art facility on a limited basis in 2012 after years of delays. But its owners filed for Chapter 11 bankruptcy protection less than a year later, saying they didn't have enough money to buy cattle for slaughter.
Nail last week approved the plant's request to borrow $512,000 to pay bills. Its request for $2.25 million in credit will be considered later this month.
Judge Charles Nail on Monday announced he is allowing Northern Beef Packers' idled South Dakota beef packing plant to employ Lincoln International, an investment banking firm, to pursue a "stalking horse" bid for the bankrupt business.