SIOUX FALLS, S.D. (AP) — A San Francisco-based investment banking firm has submitted the winning $44.3 million credit-and-cash bid for an idled South Dakota plant during a bankruptcy court auction Thursday in Sioux Falls.
White Oak Global Advisors is the new owner of Northern Beef Packers, which filed for bankruptcy in July because it lacked money to buy cattle for slaughter. White Oak’s bid included $39.5 million in credit and $4.8 million in cash to satisfy prior liens.
The Northern Beef plant opened on a limited basis in 2012, but struggled to ramp up production and had to lay off its employees.
White Oak, which extended Northern Beef a loan of up to $35 million last September, was automatically deemed a qualified bidder.
Wisconsin-based American Foods Group submitted the $12.75 million minimum opening bid, but did not counter White Oak’s offer.