SIOUX FALLS, SD -
A federal judge has approved a half million dollar loan so Northern Beef Packers can pay its bills as management prepares to sell the plant.
In July the Aberdeen beef processing facility closed its doors, laid off its workers and filed for bankruptcy less than a year after opening.
Attorneys for Northern Beef want more than $2 million in financing to keep the plant running and make it more appealing for a sale. But they had to get preliminary approval from a bankruptcy judge first - and they got that Thursday afternoon.
A year ago the plant was appraised at $76 million dollars.
The $500,000 approved Thursday will help pay the managers who remain at the plant, the utilities, insurance and security of the property which have all gone unpaid since the end of July.
Attorneys didn't have much to say, or have time to talk following court but one classified the ruling as a 'big win,’ and said the company now has some money to operate.
The plant hopes to hold an auction and have the sale of the plant finalized by the end of the year.
While the judge was hesitant to auction off the plant to pay off creditors he did say that he saw the sale as the only shot to get the employees paid.
A hearing will be held in Pierre later this month to give final approval to the rest of the $2 million of financing Northern Beef is requesting.
© 2013 KELOLAND TV. All Rights Reserved.