Friday, March 16, 2012

Not All Sweetness and Light as Missouri Company Files Chapter 7

A federal bankruptcy court has ordered Mamtek U.S., an artificial sweetener manufacturer, to file Chapter 7 bankruptcy, according to a disclosure notice from UMB Bank, the trustee for the $39 million in municipal bonds used to finance the huge project.
The recently-released disclosure notice stated that Mamtek did not respond to an involuntary bankruptcy suit filed by UMB and four of Mamtek’s creditors, so the U.S. Bankruptcy Court for the Western District of Missouri ruled Mamtek must file its bankruptcy schedules by March 12.
From an article on www.moberlymonitor.com by Benjamin Herrold, the bankruptcy filing is not a guarantee that the equipment from the partially completed artificial sweetener factory in Moberly, Missouri, will be liquidated; finding another company to purchase and complete the project would be more preferable.
The project, which would have created hundreds of jobs in the area, stalled when Mamtek was unable to make the bond payment due to bondholders last September. The bonds were annual appropriation bonds; the city maintains that it has no legal obligation to pay off the bonds and does not plan to do so. This action caused an event of default that caused all the principal and interest accrued on the outstanding bonds to come due
According to an article on www.stltoday.com by Jason Hancock, questions of shaky financing and the efficacy of the Chinese company that was involved with the project has been suspect for almost two years.
Macey Bankruptcy Law employs some of the most knowledgeable consumer bankruptcy attorneys in the country, representing tens of thousands of new clients each year in consumer bankruptcy matters. The attorneys of Macey Bankruptcy Law are current on the new Chapter 13 and Chapter 7 bankruptcy laws across the country. Our attorneys answer their phones Monday thru Saturday so you can get your initial complimentary consultation at a time that is most convenient for you. Our aggressive representation and extensive experience have earned Macey Bankruptcy Law a national reputation for excellence in the representation of debtors in financial distress. Call us toll-free at 1-800-260-2402 and log onto our newly designed, easy-to-navigate, interactive website atwww.maceybankruptcylaw.com.

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