050436 Mississippi Beef Plant Sale Talks Extended

The Mississippi Development Authority has extended its negotiations for the former Mississippi Beef Processors facility for at least one week.

"Due to the complexity of this transaction, it takes time to work through the real estate related technical issues," MDA spokesman Scott Hamilton said today.

"We feel we will work through these standard real estate matters and hopefully be able to make a final winner announcement by the end of next week."

The names of prospective buyers were not released.

MDA officials said they had hoped to select a purchaser by Thursday.

"It looks like we will have to ask for taxpayers' continued patience."

The Oakland plant, which was built using state-backed loans and grants, closed in November. The plant cost $43.5 million to build. But interest and other carrying costs has put the state's tab at more than $55 million.

That amount grows by $5,390.46 each day.

Richard N. Hall, the original owner, closed the facility after only three months of operation due to problems in the rendering plant and lack of working capital to buy cattle.

Hall and is wife, Jill, are part of an investigation being conducted by the offices of the state attorney general, the state auditor and the FBI. The Land Water and Timber Resources Board also is being audited.

MDA is handling the negotiations, with input from the governor's office and the LWT board. The process includes due diligence to ensure the winner demonstrates the financial ability to close the sale and a reasonable opportunity to succeed financially.

"We are extremely pleased with the progress we are making, compressing a process that often takes months into two weeks," Hamilton said.

The agency still expects a closing date of no later than May 28.

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