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.
Against this backdrop we fast forward to the 2008 Mississippi Senate campaign for Trent Lott’s old seat. I still marvel the Democrats would run a candidate in Ronnie Musgrove that has potential exposure from the fall out of this $55,000,000 mess, the resulting criminal convictions and upcoming trial. I consistently hear this will not end with Moultrie and company. The big question is how close this will come to the Musgrove himself.
I’m interested to hear what our Georgia based readers think.