UMB plans to auction off assets of Mamtek’s failed artificial sweetener plant this fall.
The bank has been trying to find a buyer for the plant for several months, according to a UMB auction notice. UMB, a Mamtek creditor, is selling the plant to recoup losses from the Moberly plant.
The plant ruined the city of Moberly’s credit rating after the city issued $39 million in bonds to pay for its construction. Mamtek was never able to make a single payment on its bond notes and the city was left responsible for the bill.
In the same release, UMB announced it is suing former President of Mamtek, Bruce Cole, whom the company alleges fraudulently transferred claims. The Kansas City Business Journal has reported Cole used money from Moberly bonds to pay off his own debt.