October 8, 2012

Northern Beef Packers close to debt clearance

Northern Beef Packers is close to clearing its debt as the firm is five years into its attempt to open a beef packing facility.

The company has paid off all but one of 39 liens filed against it over the years, for a total amount of nearly US$14 million paid.

The remaining lien was filed by Scott Olson Digging for US$2.1 million for work done in 2007. Northern Beef filed a lawsuit against that company, and the case is still pending in court.

Northern Beef officials said they have been able to pay the liens after having received a US$35 million loan from White Oak Global of San Francisco. The company also deposited US$900,000 in trust to pay local cattle producers.

Other recent progress toward opening the plant included the company's receipt of a temporary certificate of occupancy, which allowed it to slaughter cattle in a test run.

The plant currently employs nearly 260 employees. Company officials expect to employ 560 workers and slaughter 1,500 head of cattle at full production.