KBHB BIG 81
LISTEN LIVE
KBHB Music Vault 6:00pm - 11:59pm
KBHB ON DEMAND
facebook

News Article

Former South Dakota Governor Mike Rounds and currently serving in the U.S. Senate welcomes EB5 investors while promoting a South Dakota certified beef initiative program.

Former South Dakota Governor Mike Rounds and currently serving in the U.S. Senate welcomes EB5 investors while promoting a South Dakota certified beef initiative program.
Creditors left out of packing plant bankruptcy settlement
AP & STAFF - November 13, 2017

ABERDEEN, S.D. (AP & STAFF)  – Almost $80 million that more than 100 businesses, investors, government entities and others claim they're owed won't be paid out in bankruptcy proceedings for the Northern Beef Packers plant in South Dakota.

Court documents show there's slightly more than $1 million available to pay a long list of bills. Attorney Forrest Allred, the bankruptcy trustee, says the available money will cover administration fees, wage claims and some back taxes.

Northern Beef operated a beef processing plant in Aberdeen from 2012 until July 2013, when the company laid off its employees, filed bankruptcy and closed.

The plant was sold at a bankruptcy sale in December 2013 to New Angus, LLC, owned by White Oak Global Advisors, for $4.7 million in cash. The sale also included $39.5 million in credit for the company that earlier had loaned the failing business $35 million dollars.  An additional provision of the sale was that White Oak would have no ties or obligations to the bankruptcy proceedings.

The court had set the minimum bid at $12.75 million, far less than the nearly $50 million court filings indicated the company owed its creditors. American Foods Group, a packing plant located in Green Bay, WI offered the minimum bid in cash but proffered no counter when White Oak stepped up with its bid that combined cash and credit.

Northern Beef Packers was a part of then Governor Mike Rounds’ South Dakota Certified Beef initiative. He and others used the federal investment for green cards immigration program (EB-5) that fast-tracked citizenship for foreign investors. Korean and Chinese investors paid $95 million to buy their way into America through the Northern Beef Packers project.

The suspicious death (later ruled a suicide) of a former state official  involved in the green cards for cash program and the mishandling of investor and state subsidy funds, shuttered the plant before it ever was fully operational.  It’s estimated the value-added industrial ag project continues to cost South Dakota taxpayers tens of millions of dollars in ongoing settlements and lawsuits.



kbhbradio.com
Phone number: 605-347-4455
E-mail: info@kbhbradio.com
Address: 1612 Junction Avenue, Suite #1
Sturgis, SD 57785
  BIG 81 ON FACEBOOK
  WEATHER
  MARKET NEWS