Ag chief to borrow $7M to take control of mill - FOX 8 WVUE New Orleans News, Weather, Sports

Ag chief to borrow $7M to take control of mill

Updated:

BATON ROUGE, La. (AP) - Agriculture Commissioner Mike Strain will borrow $7 million to take control of a defunct sugar cane mill in southwest Louisiana that was built with state tax dollars and only operational for 90 days.

Strain received approval Thursday from the Bond Commission to borrow the money through a bond sale and repay it over 10 years.

The mill is teetering on default of its debt payments. Strain says if the state doesn't buy out the mill, a bank would take over the property and the agriculture department wouldn't be able to sell it or lease it to recoup some of its investment.

Strain said his department has spent $78 million to build and maintain the Lacassine mill constructed under his predecessor, Bob Odom. It was appraised for less than $7 million.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Powered by WorldNow

Fox 8 WVUE-TV
Louisiana Media Company, LLC.
1025 S. Jefferson Davis Parkway
New Orleans, LA 70125

General Number: (504) 486-6161
News Tips: (504) 483-1503
News Room Fax: (504) 483-1543

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WVUE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.
WVUE's Public Inspection File can now be accessed online. To access the online public inspection file click here: https://stations.fcc.gov/station-profile/wvue-dt.