Failed Moberly development deal could spell trouble for Missouri investments
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Failed Moberly development deal could spell trouble for Missouri investments

Date: October 5, 2011
By: Mariel Seidman-Gati
State Capitol Bureau
Links: A failed Moberly investment deal could put future Missouri projects at risk.

Intro: 
A failed Moberly investment deal could put future Missouri projects at risk.
RunTime:  0:46
OutCue:  SOC

Wrap: Mamtek's recent default on its first bond payment to Moberly caused a severe downgrade in the city's credit rating.

Columbia Senator Kurt Schaefer says this means Moberly residents are now facing higher costs on loans and bonds.

But Schaefer says the default could hurt the chances of finding project investors in cities throughout the whole state, not just in Moberly.

Actuality:  SCHAEF3.WAV
Run Time:  00:12
Description: "There's always a certain level of risk that's taken on with a municipal bond, but now because of some of the things we're seeing with what happened with Mamtek there may be some sort of a stigma with Missouri municipal bonds."

A Senate committee plans to review the state's decision to invest in the Mamtek deal by examining all related documents from the Department of Economic Development.

Reporting from the state Capitol, I'm Mariel Seidman-Gati.

Intro: 
The failure of a Moberly investment deal could leave the city responsible for paying back the debt.
RunTime:  0:47
OutCue:  SOC

Wrap: Chinese artificial sweetener company Mamtek recently defaulted on its first bond payment to the city of Moberly.

But the default was on an appropriation bond and Columbia Senator Kurt Schaefer says Moberly and the project's trustee, UMB Bank, each claim they are not responsible for the 39 million dollar debt.

Actuality:  SCHAEF4.WAV
Run Time:  00:11
Description: "One thing we will attempt to do in the committee is really figure out exactly what are the municipal obligations under an appropriations bond."

Standard and Poor have already downgraded Moberly's credit rating.

A Senate committee launched an investigation of the state's decision to invest in the Mamtek deal.

It plans to examine all related documents from the Department of Economic Development.

Reporting from the state Capitol, I'm Mariel Seidman-Gati.


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