July 2, 2010
Northern Beef project cleared to get loan from investors
A small group of secret investors does not need a state lending license to make a short-term US$30 million construction loan to Northern Beef Packers, the South Dakota Banking Commission stated.
The loan was described during the 15-minute hearing as the last major piece in reviving the stalled Aberdeen beef plant project, which is a key component in Gov. Mike Rounds' South Dakota Certified programme for raising, butchering and marketing quality beef that can be specifically tracked from the pasture to the feed lot to the table.
The Northern Beef project began in 2005. The empty building, started by Aberdeen livestock marketer Dennis Hellwig, now has many liens and other claims against it. He and the original investors have been unable to attract enough conventional financing to get the plant finished and open.
David Palmer, president and chief executive officer of Northern Beef, declined comment on the timeline of construction and completion.
The hearing on Tuesday (Jun 29) provided additional insight into who's providing the $30 million loan, which is due in 2013 or sooner. An affidavit filed for Wai Yee Christine Ma, a resident of Hong Kong, outlined the financial chain. She is a director of Anvil Asia Partners, a Cayman Islands-incorporated company. Anvil Asia manages Pine Street Special Opportunity Fund I, also incorporated in the Cayman Islands.
The actual lender of the US$30 million is Epoch Star Limited, a special purpose entity incorporated in the British Virgin Islands and wholly owned by Pine Street.
