050409 Mississippi Beef Plant's Potential Buyers Gain More Time

The Mississippi Development Authority has extended the deadline for submitting proposals to purchase Mississippi Beef Processors.

Parties interested in the facility requested an extension because they need additional time to prepare offers on the defunct Oakland plant, built with state-guaranteed loans.

Friday was the original deadline for accepting proposals for the $43.5 million facility.

"We feel good about the prospects for someone buying the plant at a reasonable price," said MDA spokesman Scott Hamilton. "Obviously, we have a number of bidders who are very interested in wanting to take a little more time to see that their bid is appropriate. We're happy to accommodate them."

Nine interested parties have inquired about the defunct $43.5 million Mississippi Beef Processors, Hamilton said.

Once a bid is accepted, the state will have 30 days to close the deal, which, in the opinion of an industry expert, will see the plant sell for pennies on the dollar.

As of Friday, $961,000 in interest and carrying costs was added to the $54 million the state has committed for the facility. And each day the loan goes unpaid, the state accumulates $5,390.46 interest on that debt. The state will pay Community Bank the difference between what it earns for the sale of the plant and the $43.5 million. The figure includes a $35 million state-backed loan and a $6.5 million line of credit exhausted by Richard N. Hall Jr., who was president of the cull cow processor.

Cull cows are those removed from the herd because they no longer produce or graze. They are primarily processed into ground meat.

The plant shut down Nov. 17 after three months of operation, shedding 400 jobs.

Sen. Charlie Ross, R-Brandon, said he favored extending the deadline if it improved the chances of selling the plant.

"I can't say whether I'm optimistic (it will sell) or not because I haven't been involved in the efforts to market it," Ross said. "We've come this far. I would hope that we would give them a couple of extra days."

Hall and his wife, Jill, are under investigation by a task force composed of State Auditor Phil Bryant, Attorney General Jim Hood and the FBI. Mississippi Beef Processors is also under investigation.

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