Contact Us

State Board Cancels Beef Plant Loan Commitment

Carlos Vasquez monitors ground beef as it passes through a machine that makes hamburger patties at a meat packing and distribution facility June 24, 2008 in San Francisco, California.
Justin Sullivan/Getty Images

SIOUX FALLS, S.D. (AP) — The South Dakota Board of Economic Development has canceled a $5 million loan commitment to an idled South Dakota beef plant.

The move was expected, as the loan was contingent upon the completion of construction of Northern Beef Packers and the meeting of certain financial and operational milestones. The Aberdeen company filed for Chapter 11 bankruptcy protection in July and never met those milestones.

The commitment was originally made in January 2010 and was extended through March 2014 at the board’s Feb. 12, 2013, meeting.

Investment banking firm White Oak Global Advisors last month submitted the winning $44.3 million credit-and-cash bid for Northern Beef during a bankruptcy court auction in Sioux Falls. The deal has not yet closed, and the new owners have not announced their plans for the facility.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Best of 1000 KXRB

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KXRB Classic Country VIP Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KXRB Classic Country VIP Club contests, events, coupons, presales, and much more delivered to you for FREE.