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SLABBED – Here is Something for...

SLABBED – Here is Something for Our Beef Plant Readers to Chew On

By: Magnolia Tribune - May 30, 2008

Here is Something for Our Beef Plant Readers to Chew On

Belle alerted me that lawyers for This Facility Group filed a motion Tuesday seeking a subpoena of Community Bank’s records on their business dealings in connection with the failed beef plant. The filing strikes me as routine but the part I found interesting is that despite a loan guarantee by the Mississippi Development Authority, Community Bank experienced some heartburn with the management of the project by Missississippi Beef Processors LLP. I found this quote on page 2.

Despite the State guarantee, the bank refused just a few months later to fund the first construction draw due to concerns over the management of the project.

My experience is this would be highly unusual as the loan was essentially risk free for Community Bank yet here we are at the earliest stages of the project with red flags flying. I can’t imagine the politicians sending tax money down an obvious black hole without getting a brown paper bag in return. It will be most interesting to hear why Community Bank refused to fund the first draw on a guaranteed loan.


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Magnolia Tribune

This article was produced by Magnolia Tribune staff.