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FALLS, S.D. (AP) – A federal judge is allowing Northern Beef Packers to borrow 2,000 to pay bills as its Chapter 11 bankruptcy case continues.
Judge Charles Nail approved the plant’s request to obtain secured credit during a hearing on Thursday. Northern Beef’s request to borrow $2.25 million and move forward with a sale of the beef plant will be considered during the next hearing, scheduled for Sept. 26 in Pierre.
Northern Beef Packers opened its $109 million state-of-the-art facility on a limited basis in 2012 after years of delays. But its owners filed for Chapter 11 bankruptcy protection less than a year later, saying they didn’t have enough money to buy cattle for slaughter.
The plant wants to hold an auction sale rather than have its case move into a Chapter 7 liquidation.