Press "Enter" to skip to content

NBP Needs $4.9 Million to Arrange Slaughterhouse Auction by October 1

I'm reviewing the first of the documents I've received on Northern Beef Packers' bankruptcy case. In its cash collateral motion, filed July 24, NBP says that it has been working with White Oak Global Advisors LLC to arrange a Section 363 sale and will seek the bankruptcy court's approval for a stalking horse bid and sale within the next three or four weeks.

White Oak Global Advisors, LLC, is a San Francisco-based investment firm. The cash collateral motion explains their interest in NBP:

The Debtor [NBP] and White Oak are parties to that certain Loan and Security Agreement dated September 10, 2012 (as amended from time to time, the “2012 White Oak Loan Agreement”), pursuant to which White Oak provided financing in the aggregate principal amount of $35,000,000.00. As of the Petition Date, the outstanding balance owing under the 2012 White Oak Loan Agreement (inclusive of principal, capitalized interest, Make Whole Amount and other yield maintenance amounts) was not less than $64,417,350.64, plus accrued and unpaid pre-petition and post-petition interest, fees, expenses and other amounts chargeable under the 2012 White Oak Loan Agreement [Debtor's cash collateral motion, In re: Northern Beef Packers Limited Partnership, Case 13-10118, United States Bankruptcy Court, District of South Dakota, filed 2013.07.24].

White Oak notified NBP they were in default on their loans back on March 20.

Out $64 million? Slaughterhouse workers, you're in line behind some big players for your paychecks.

NBP says it has no money to handle the administrative costs of arranging the Section 363 sale and keeping the plant in good shape until it happens. NBP is thus asking the court to allow it to borrow $4.9 million more from White Oak to pay the lawyers and arrange an auction by October 1.

By the way, White Oak acts as the agent for Epoch Star Limited, which, according the debtor-in-possession agreement NBP has filed, is acting as guarantor of this immediate loan. Epoch Star Limited is the group of secret investors who saved NBP's hide with a $30-million loan in 2010. Epoch Star Limited formed solely for the purpose of funneling money to NBP. The South Dakota Banking Commission issued a special ruling in 2010 to assure Epoch Star Limited that they didn't have to obtain a lending license to do this big favor.

Epoch Star Limited is based in the British Virgin Islands. Its owner, Anvil Asia Partners, is based in the Cayman Islands... meaning the money and players pulling the strings on NBP might as well be hidden behind an iron curtain.


  1. Owen Reitzel 2013.07.29

    aren't there any checks and balances on transactions like this? I'm obviously no expert on this.

  2. MJL 2013.07.29

    Epoch Star Limited is based in the British Virgin Islands. Its owner, Anvil Asia Partners, is based in the Cayman Islands... meaning the money and players pulling the strings on NBP might as well be hidden behind an iron curtain.

    I believe that is a group of EB-5 investors established out of Korea to get money to NBP.

  3. Deb Geelsdottir 2013.07.29

    "a stalking horse bid"? What is that?

  4. Robin Page 2013.07.29

    Can't NBP just have the Governor and his friends sell some more "Green Cards" to out of country investors.

  5. Jenny 2013.07.30

    What a big embarassing mess for South Dakota - voted the best place to do business (what a joke). Of course the GOP boys are keeping it hush hush. Pat Powers does not care to acknlowledge it on his blog. No surprise to that. Just look the other way and pretend it's just a local Aberdeen mess. We can't have Mike Rounds getting negative press.

  6. Bill Dithmer 2013.07.30

    Deb I hope this answers your question.

    Definition of 'Stalking-Horse Bid'
    An initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.

    'Stalking-Horse Bid'
    This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.

    The Blindman

  7. Douglas Wiken 2013.07.30

    The Democratic Party should buy the old WPA Governor's mansion in Rapid City and turn it into a memorial to Franklin D. Roosevelt and the programs that built a lot of SD infra-structure and got people fed and working again.
    Who would be their stalking horse bidder for that project since the "mansion" is up for bankruptcy sale also.

  8. Bill Dithmer 2013.07.30

    Epoch and Pine Street are both managed by Anvil Asia Partners (“AAP”), a ... institution in the sole business of lending money. 6.

    Which brings us to this guy. David Morris Managing Partner at Pine Street.

    David joined Pine Street in mid 2008 and is involved with all activities at Pine Street. He currently serves as a board observer on Pine Street portfolio companies Vision Appraisal Technology Inc. and Scotia Technology, and is a board member on Pine Street portfolio companies Jersey Precast Corp, Koch Eye Associates and Net Direct Merchants. Previously, he was a Managing Director at Citizens Capital,

    Citizens Capital started looking shady in 2001 and is still in hot water with the Securities and Exchange Commision. That information can be found here.

    Oh what a tangled web we weave. Oh crap once a thief, no that doesnt fit either. Just another turd in the feedlot. There that's it.

    The Blindman

  9. caheidelberger Post author | 2013.07.30

    Bill: Holy cow! That's some significant linkage!

  10. Slynn 2014.10.09

    Sometime back I was reading in a lawsuit of several Chinese investors that they were strong-armed into subjugating their financial interest in NBP to White Oak. I may not have this right, but I had the impression there may have even been an effort to bankrupt NBP so that White Oak could come in and buy the plant for pennies on the dollar. I believe the plaintiffs dropped their suit. I'm not sure if his is germane to the research you are conducting, but I thought I would pass this along.
    Thank you for all you have done.

Comments are closed.