Officials with the City of Moberly say it will not spend taxpayer money to pay a debt service reserve fund for the 39 million dollars of bonds tied to the failed sucralose plant there.
City officials cite legal language saying the city does not have to pay any case to bond reserves. It believes UMB bank will take over control of Project Sugar as trustee of the bonds. The bank has issued a statement saying it is working with lawyers to resolve the issue.
The City meanwhile is exploring either working with an investor who wants to expand the scope of the sugar refining plant, or liquidating the project’s assets.