Proposed settlement in failed Moberly sweetener plant saga
COLUMBIA, Mo. (AP) — A proposed settlement could end the long legal fight over a failed effort to build an artificial sweetener factory in Moberly.
The proposal is between bankruptcy trustee Bruce Strauss and former Mamtek CEO Bruce Cole and his wife, Nanette. Bruce Cole created Mamtek and persuaded Moberly officials in 2010 to issue $39 million in bonds to build an artificial sweetener plant.
The plant was never built, Mamtek went into bankruptcy, and Cole served about 3½ years in prison for theft and securities fraud .
The Columbia Daily Tribune reports the proposed settlement would free more than $800,000 to pay creditors of the bankrupt company.
The Coles would receive $100,000 for the sale of their Beverly Hills home and would not have to pay a $1.25 million judgment to recover money taken from the bond fund.
Information from: Columbia Daily Tribune, http://www.columbiatribune.com