Beef plant to be auctioned in Sioux Falls Dec. 5
The bankruptcy auction of a beef plant on the southern edge of Aberdeen will be in Sioux Falls rather than at the plant itself.
According to paperwork from attorneys representing Northern Beef Packers, the auction will begin at 1:15 p.m. Dec. 5 at the federal courthouse in Sioux Falls. Bankruptcy Judge Charles Nail will oversee the auction.
The plant opened on a limited basis in 2012 after years of delays, but its owners filed for Chapter 11 bankruptcy protection earlier this year, saying they didn’t have enough money to buy cattle for slaughter. The plant has laid off most of its employees.
An opening bid of $12.75 million is required for the plant, and qualified bidders must have the financial wherewithal to timely close the sale, according to bankruptcy paperwork. It also says qualified bidders will have to have 10 percent of that total available before the day of the auction. Nail will decide who the qualified bidders are with most of the stipulations having to do with having the necessary amount of money to complete the transaction.
If there is an opening bid, other bidders may raise it in increments of $250,000, with Nail able to modify the minimum increment during the auction, according to paperwork.
The documents also say that a backup bidder – the bidder submitting the second-highest total – will be selected in case the top bidder can’t complete the deal.