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.