Rentech sends money for land

By Adam Koob (Contact) | The Natchez Democrat

Published Saturday, May 31, 2008

NATCHEZ — The money is in the bank — but the deal is not quite done.

Late Friday afternoon Rentech officials wired the money necessary to purchase the International Paper site into a trust maintained by Adams County.

Rentech’s vice president of corporate communications and governmental affairs, Tom Sayles, said the financial transaction was good news for Rentech and Adams County.

“It’s a win-win situation,” he said.

And while word of the transaction was good news to members of the Adams County Board of Supervisors and Rentech’s shareholders, the deal is not 100 percent complete.

International Paper, Rentech and the St. Catherine’s Creek Utility Authority are still in contract negotiations.

While Utility Authority board member Woody Allen said he could not discuss specifics of the negotiations he did say he hopes they will be rectified by early next week.

Allen said the Utility Authority is still discussing funding on landfill and restricted areas on the property.

“The utility authority received an agreement (from Rentech) two days ago and is seeking resolution,” he said.

While specifics of the deal are not being discussed by Allen or Rentech officials, both did speak optimistically of the deal’s final closure.

“The dollars are in escrow,” Sayles said. “We believe that evidences the transaction is going to go forward.”

And that evidence, in the form of a little more than $8 million, came as good news to many.

Bill Tobey, a Rentech shareholder for the past 11 years, was excited to learn of the closing.

“We (shareholders) have been waiting a long time,” he said from his home in Colorado Friday evening. “It’s definitely good news.”

Supervisor Darryl Grennell said news was a major step for the future of Adams County.

“It has been a long time coming,” he said. “But it’s great news.”

Board President Henry Watts said much of his day was spent inspecting and finalizing documentation dealing with the closing.

“The county’s due diligence is done,” he said Friday evening.

And while the county’s involvement with the deal is over, issues with the utility authority still need to addressed.

While Allen and Rentech authorities maintained an optimistic outlook on the end result, Watts said the utility authority’s issues are serious.

“The entire project hinges on that closing,” Watts said.