COLUMBIA, Mo. (AP) A recent disclosure shows that a company trying to receive state and local incentives for manufacturing an artificial sweetener in central Missouri has little cash.
Mamtek U.S. Inc. has planned to produce the calorie-free sweetener sucralose in Moberly. The city issued $39 million in industrial bonds for the project, the state offered more than $17 million worth of incentives and the deal called for an $8 million private investment.
The Columbia Daily Tribune reported Monday that a filing from UMB Bank, the trustee for the bonds, indicated that Mamtek representatives had told the bank that the company is “severely financially distressed and has very little cash.” According to that filing, company representatives also had said they think the project is viable but would cost $20 million to $44.5 million to complete and that the company had said it thinks certain intellectual property escrowed for the project has very little value.
Mamtek missed its first bond payment, and the newspaper reported that the company has laid off four people it had hired in central Missouri.
Peter Kravitz, who became the president of Mamtek after the bond payment had been missed, confirmed Monday to the AP that the company has little cash. Kravitz said he could not comment about the estimate for completing the project or about the value of intellectual property. Kravitz is an attorney and focuses on restructuring companies.
Last week, the Moberly Area Economic Development Corporation said officials had been notified that the bond payment was missed. The development corporation said in its statement that money was used from a reserve fund to pay bondholders and that there is sufficient money in the reserves to make the next scheduled bond payment.
Copyright The associated Press