SIOUX FALLS | A state-of-the-art South Dakota beef packing plant that has lacked the money to ramp up to full production is set on finding a buyer rather than reorganizing.
Northern Beef Packers in Aberdeen, which filed for Chapter 11 bankruptcy protection last month, asked the court in Sioux Falls on Thursday to allow it to hire investment banking firm Lincoln International, which is now recommending a sale.
Chris Stradling, a mergers and acquisitions adviser with Lincoln, testified Thursday that his company would look for a "stalking horse" bid, in which one potential buyer makes an initial offer to set the floor for an auction that invites competitive bids.
"The most likely outcome is that someone else will own this business in a control position," Stradling said.
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