Greentech filed for Chapter 11 bankruptcy in the U.S. Eastern District of Virginia. Guess who is in the top five creditors? If you guess Mississippi ($2.8 million) and Tunica ($2 million), you would be correct.
MDA lent $3 million to Greentech. State Auditor Stacey Pickering stated in a report issued last year:
MDA made the first and only loan disbursement to GreenTech on February 12, 2012 in an amount totaling $3 million. The IIFR loan payments were due semi-annually on June 30th and December 31st of each year, with the first loan payment due six (6) months after the Start of Commercial Production (stated as 10/5/2015, per the Company’s website). On July 7, 2016, MDA officially notified the Company they had defaulted on the first loan payment, which was due on June 30, 2016. In an attempt to rectify the default, GreenTech made its first payment of $150,000 to MDA in November 2016. Per GreenTech’s Corporate Finance Director, the Company has only made one (1) loan payment to date. Earlier post.Well, look at the bright side. At least Mississippi kept the amount of money lost in the single digits. Progress!
20 comments:
Thanks, Haley!!!
Hooray for Dixie! We win again!! What's the next move, sue for recovery??
Former governor Haley Barbour, take a bow. Former governors Bill Clinton and Terry McAuliffe are good salesmen, but poor investment counselors. Citizens and Tunica County are on the hook for this one.
Barbour and all his cronies made their money on this and have moved on to the next project. We are left paying for it. Just keep working, pay your taxes, put a Thad sticker on your car and shut up.
Sad to say, but 9:06 is right.
Baby beef plant?
Bring it to Mississippi! We’ll pull our pants down.
"Bring it to Mississippi! Haley will pull our pants down and bend us over. All you have to do is give us the shaft."
What about KIOR?
If a business venture is a sound one and not extremely risky , that business doesn't need government funds. Investors will be easy to acquire.
And, if a politician thinks a business venture is sound and not extremely risky, he will damn well invest his own money so he will reap the profits.
If a businessman has no personal risk and can personally profit from a business venture whether the venture succeeds or fails, something is wrong with this picture.
This was not the way things worked when our country " was great".
And, we keep buying " a pig in a poke" because we don't follow the money and figure out how it's made or spent but worship those who had a "pig" to sell us and told us that " pig" was fat and healthy and pregnant! All we needed was to hear squealing and imagine how that " pig " would feed us.
Look at the history of leadership at MDA (and it's predecessors). Those guys revolve in and out the door in a year, two or three years at the most before we pay for a nationwide search to attract the next 'best candidates available in the US'. And when they leave within three years, Mississippi is just another bullet point on their resume as they move on to another venue.
So, the state establishes a slush fund and we rely on the investment and risk-taking advice of these traveling salesmen? They all wear the T-Shirt that says, "WIN SOME - LOSE SOME".
Anybody know why the MDA loan is listed as "disputed"?
Someone needs to hold MDA (Mississippi Development Authority) accountable. They really suck. Example:
Beef Rendering Plant *** Hugh Failure
Kemper Gasifier Plant *** Super Hugh Failure
KOIR *** Failure
Smart Sync (sold out to Itron for 53 million than fired everyone) Jobs went to North Carolina *** Failure
Contential Tire Plant *** will have negative Tax flow forever
Trustmark Stadium Pearl **** Failure
Where Jim Hood when you need him?
11:04, don't forget about Nissan and Toyota. When Tennessee was bidding for an auto plant their governor told the Wall Street Journal. "We will make a good offer but it has to make business sense for the State. We are going to have crazy giveaways like Mississippi."
One of the senior execs at the State Tax Commission told me that even with the ripple benefits the Nissan plant would never make economic sense for Mississippi.
I am 1:16, pardon the typo.
The Tennessee gov said "We are NOT going to have crazy giveaways like Mississippi."
1:16, a Sr. Exec at the State Tax Commission (actually, the State Department of Revenue) would have no idea as to whether Nissan will make economic sense for Mississippi. Unless, of course, he couldn't get a real job in the profession he has been educated in and had to take a govt job at DOR doing something he is not trained to do.
I heard someone the other day, over at the Department of Agriculture say that the amount of money given to MDOT was plenty to pave the interstates with bricks of gold. But he didn't want to leave his position checking the gas pumps throughout the state so he isn't moving over to MDOT to show them how to do it.
Where Jim Hood when you need him?
Maintaining that 1990s-era Roger Clinton hairdo, probably. Or threatening Google.
11:04 Government at all levels should keep their paws off of business dealings, if the people involved in government could do anything, they would not be involved in business. It should not even be a thing for government to give money or favor to any business.
I don't comment on the economic knowledge of Sr. Execs at the MS Dept of Revenue. But for 4:56 to compare the top execs at that the MS Dept of Revenue to a gas pump checker deflates his argument.
The state Department of Revenue will screw you in the ground over close to nothing and the state just gives crooks huge money.
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