Washed sand is stockpiled beneath Northern Industrial Sand’s elevated conveyor in Sioux Creek Township in a file photo from 2015.

A creditor has filed receivership proceedings against Northern Industrial Sands, a frac sand mining and processing company located in rural New Auburn.

Minneapolis, Minn., based Dougherty Funding LLC filed the Chapter 128 receivership case in Barron County Circuit Court on April 24. This case is a type of corporate bankruptcy proceeding where a business continues to operate normally under a third party (the receiver) while debts are settled.

Milwaukee-based attorney, Michael Polsky—who has handled receivership cases for Gordy’s and Atrium Post Acute Care—was appointed the receiver.

Listed in the court filings were several NIS-related companies and other parties—NI Sand Holding LLC, Northern Industrial Sands LLC, Nothern Rail & Transload LLC, XYZ Corporation, ABC Partnership, Joe Doe and Mary Rowe.

Creditors of NIS have a deadline of Aug. 10 to file any claims with the court. The claims will be combined into the case.

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