A foreclosure auction will be held at the site of the failed Mamtek US Project later this month. UMB Bank is now in control of the failed artificial sweetener plant in Moberly. Mamtek filed for bankrupcy in early June, after having been issued $39 million in bonds from the city, which it later defaulted on.
Bank officials say they spent several months trying to find a buyer interested in opening a facility at the partially-constructed plant. As there has been no interest, they now hope to auction off the equipment at the site before the potential harsh winter weather causes damage.
Following Mamtek’s failure, the Federal Securities and Exchange Commission and the Missouri Attorney General launched investigations into the company. CEO Bruce Cole has been charged with stealing and four counts of securities fraud. The auction is scheduled for October 24th.