Missouri Municipal League Officer said Mamtek is Unusual
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Missouri Municipal League Officer said Mamtek is Unusual

Date: November 10, 2011
By: Tong Gao
State Capitol Bureau

Intro: 
Missouri cities and counties have borrowed more than 10 billion dollars to support new businesses in last 7 years. Municipal bonds were not considered risky until Mamtek failed to pay back the debt for a sweetener factory.
RunTime:  0:39
OutCue:  SOC

Wrap: 

Moberly borrowed 39 million dollar municipal bonds for Mamtek.

Now that the project failed, the Moberly City Council voted not to pay the 3.2 million dollar missed payment for Mamtek.

Missouri Municipal League represents the cities' interests at the state level.

Member Services Associate Stuart Haynes says municipal bonds usually work well, and Mamtek is the first failure to his knowledge.

Actuality:  HAYNES4.WAV
Run Time:  00:06
Description: "That's a pretty unusual situation to where the bonds were not get paid back. It's just very unusual."

Mamtek's unusual situation has degraded Moberly's credit rating from A to B, which means higher borrowing costs for the future.

Reporting from the state Capitol, I'm Tong Gao.

Intro: 
With more than 10 billion dollar municipal bonds borrowed by Missouri cities and counties in the past 7 years, Missouri Municipal League officer said Mamtek's failure is rare.
RunTime:  0:35
OutCue:  SOC

Wrap: 

Moberly City Council voted not to pay the 3.2 million dollar mispayment for Mamtek.

Missouri Municipal League Associate Stuart Haynes says municipal bonds failure is very rare, and Mamtek is the first case he has ever heard.

Actuality:  HAYNAS3.WAV
Run Time:  00:10

Description: "I don't know of any other case from Missouri where the bonds have not been paid back." "So did they pay off, work very well, make money, make profit?" "I think, in general, yeah."

Although the debt is not the city's legal obligation, default on the bonds could lower the city's credit rating and increase future borrowing costs.

Reporting from the state Capitol, I'm Tong Gao.