A U.S. Trustee yesterday asked a judge to convert a troubled South Dakota beef processing plant's bankruptcy to a chapter 7 liquidation, the Associated Press reported yesterday. Assistant U.S. trustee James Snyder said in a petition that he believes that Northern Beef Packers, which filed for chapter 11 bankruptcy protection last month, is "administratively insolvent" based on company reports and statements. "Based on currently available information, it appears the plant represents the only asset by which Debtor may generate funds to pay creditors," Snyder wrote. Northern Beef, based in Aberdeen, S.D., had been trying to obtain post-petition financing so it could proceed with hiring an investment banking firm to pursue a sale of the plant.
