A San Francisco-based investment banking firm has submitted the winning $44.3 million 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.
The plant opened on a limited basis in 2012, but struggled to reach anywhere near its production target of 1,500 head per day. Employees were laid off and production was halted.
White Oak, which extended Northern Beef a loan of up to $35 million last September, was automatically deemed a qualified bidder.
The $12.75 million minimum set by the court is a fraction of the roughly $115 million invested in the plant and equipment.
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