MRC sold for $8.2 million
Published 12:00 am Saturday, May 29, 2010
NATCHEZ — Pulp recycler Mississippi River Corporation has been sold for $8.2 million to a newly formed company that first registered with the Mississippi Secretary of State’s office Monday.
Mississippi River Pulp LLC’s lone listed officer is Wayzata Investments Partners, LLC, of Wayzata, Minn.
According to a U.S. Bankruptcy Court order approving the sale, the new company assumed responsibility for MRC’s debt, including $684,206.93 in back property taxes owed to Adams County and $309,660.75 owed to the county for loans to expand warehouse space.
Click on the following link for the documents approving the sale of MRC: MRC sale.
Board of Supervisor’s President Darryl Grennell confirmed that the county had received a check from the private equity firm Friday.
Grennell said in addition to the unexpected boost to the county budget, the sale has great potential for Adams County.
“I think it is a good thing for the county because it creates stability in the company,” Grennell said. “They are going to keep all of the employees and hire an additional 10.”
MRC employed 60 people in February when the company filed for Chapter 11 bankruptcy, citing low demand and low prices in the previous year.
Grennell said as the world becomes a greener place, companies such as Mississippi River Pulp will be extremely important.
“This is the future, in terms of a green product,” he said. “I think it is very important that they stay in business. This is the future of America and the world.
“People are becoming more concerned about recyclable products and more environmentally conscious. They want to see no waste.”
George Matthews, MRC executive vice president, said he could not comment on the situation.
The business is located on a 99.77-acre tract on Majorca Road and opened in 1991.
The county also loaned MRC $720,000 in December 1992 and $1 million in April 1995 for warehouse space on the site. The debt remaining on those two loans accounts for the $309,660.75 Mississippi River is paying.
The manufacturing plant produces various grades of market deinked recycled pulp that can be converted into end products such as file folders, paper towels, tissue paper, copy paper, premium grade paper and food grade paper.