Issue: 1110 Date: 12/1/2011
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UMB Bank files lawsuit against Mamtek over Mo. plant
A lawsuit has been filed in federal court against the company responsible for a failed artificial sweetener factory in Moberly.
Mamtek U.S. Inc. planned to employ several hundred people at the central Missouri plant, and Moberly issued $39 million in bonds to pay for the project.
The project by Mamtek U.S. Inc. was backed by $39 million in industrial development bonds issued by Moberly, and the state offered more than $17 million worth of incentives. But the plant remains under construction, Mamtek has laid off its employees and the company missed its first bond payment.
But Mamtek missed a bond payment and the plant still is under construction. Moberly has said it does not plan to pay off remaining bonds.
UMB Bank, which is the trustee for the bonds, filed a lawsuit Friday against Mamtek U.S. Inc. and Mamtek International. UMB Bank alleged that the company breached agreements. It also requested that a receiver be appointed to handle remaining assets.
There was a busy signal Monday at the phone number for Mamtek's offices in California.
