In an auction scheduled for December 5, attorneys have pegged the minimum bid for USD12.75 million for a South Dakota beef packing plant. This was the decision made for Northern Beef Packers in its motion in federal bankruptcy court.
This pricing was reported by the Aberdeen American News and a bidding proposal had been drafted. In the proposal, bids would be solicited for all the property, fixtures, improvements, machinery, equipment and supplies for the beef packing plant.
According to the court motion, "Given the unique nature of the operating assets, it is impossible to estimate the value of the operating assets with certainty." The proposed minimum purchase price was determined to be the appropriate level to promote the broad participation during a competitive auction for the plant's assets.
Northern Beef had invested USD115 million on the plant and equipment and it opened in a limited basis back in 2012 after years of delays. Its owners had filed for Chapter 11 bankruptcy this year, as it claimed it did not have the financial resources to purchase cattle for slaughter. The plant had laid off most of its employees.
Join the Conversation