Posted: Mar 24, 2012 11:45 AM
Updated: Mar 24, 2012 11:45 AM
Source: Associated Press
BATON ROUGE - State officials have denied a Colombian businessman's request for a 90-day extension to get his finances in order while he tries to turn a profit with a cane mill.
Members of the Louisiana Agricultural Finance Authority thumbed through the charts Friday, listened to Luis Santacoloma's offer, met privately to discuss it and then publicly rejected it.
Already late on roughly $3 million in payments to the state and the bank, Sanatacoloma offered to relinquish the Lacassine mill to the state if his efforts to quickly generate cash failed.
For state government, millions of dollars are at stake. The state built the mill and still owes $16.2 million in construction costs. The state also guaranteed $6.3 million in bank loans designed to make the mill a success.