Saturday, December 03, 2011

Mo. jobs chief defends review of sweetener maker

This is the story of a deal gone bad and the ensuing argument over how much due diligence ws performed. 

Missouri Gov. Jay Nixon announced in July 2010 that a Chinese company named Mamtek would open a factory in Moberly that could employ up to 612 people. Moberly issued $39 million of bonds to finance the facility's construction, and the state offered about $17 million of incentives.

Work stopped on the partially built plant this September after Mamtek missed a bond payment to Moberly, which in turn said it would default on the bonds. No state incentives ever were paid, because the project collapsed before the aid could be triggered. The Missouri attorney general, legislature and federal Securities and Exchange Commission now are investigating the Mamtek project. More here.

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