Northern Beef Packers heads to bankruptcy court - KSFY News - Sioux Falls, SD News, Weather, Sports

Northern Beef Packers heads to bankruptcy court

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It's the next chapter in the ongoing troubles of Northern Beef Packers.

Representatives of the Aberdeen meat packing plant had their day in court to present the company's bankruptcy petition.

The judge was bothered by a couple aspects of the petition.    

He especially didn't like Northern Beef's financial adviser, Lincoln Partners, telling the court how the bankruptcy should proceed. He said that's his job. 

Lawyers for Northern Beef and its financial partners arrived at federal court to present their case for bankruptcy to a judge. 

The legal teams presented the judge with a 38-page order.  

But the judge said he's not going to sign off on such a lengthy document. 

So instead, the court addressed the terms of the bankruptcy.   

And for all of the employees still waiting to be paid, attorney Rory King hopes for a quick ruling on the bankruptcy re-organization to help the company get back up and running again soon.

"It's really in the best interest of the employees if we reorganize, and pay our creditors, and have the working capital which is what a reorganization is to get the working capital to get up and running again. So I think it gives us a lot better chance to get our employees back on board, and to get them paid and start operating again," King said.

One of the judge's main concerns is what cash collateral does Northern Beef have available to pay it's creditors. 

But the legal team for it's financial partner, White Oak, said there is no cash.

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