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308 <br /> <br /> <br /> President Fendley asked Mr. Gene Anderson, Director of Finance, to give the <br /> financial report. Mr. Anderson gave the December report. Mr. Fendley called for <br /> questions and there were none. Boardmember Dick Amis made a motion, <br /> seconded by Boardmember Michael Rhodes that the report be approved as <br /> presented. The motion carried unanimously. <br /> <br /> President Fendley stated that there would not be a President's Report given at <br /> this time. <br /> <br /> President Fendley asked Mr. Vest to make his report. Mr. Vest discussed the <br /> responses received since the last meeting, and the required Annual Report to the <br /> State Comptroller. Mr. Vest stated that he had attended a very successful and <br /> worthwhile meeting with President Fendley and Mayor Clifford in New Orleans <br /> with a representative of Babcock & Wilcox parent company McDermott. He said <br /> that the next official meeting will be held in February. Mr. Vest stated that the <br /> thirty-eight (38) acre land purchase from the Paris Industrial Foundation had been <br /> completed. President Fendley called for questions concerning Mr. Vest's report <br /> and there were none. <br /> <br /> President Fendley stated the next item on the agenda was discussion of the loan <br /> guaranty payoff to the local bank consortium and asked Boardmember Dick Amis <br /> to discuss this item. Mr. Amis said that we are proposing a shift in the timing of <br /> the guaranty. He stated that the written method was that the equipment was to <br /> be sold first and then pay the guaranty. He said that in working with the current <br /> prospect that this causes a problem in selling the equipment and basically they <br /> would like to move up the guaranty payment. Mr. Amis said they have a tentative <br /> agreement with the bank group subject to this Board's approval that we pay the <br /> 75% guaranty which is $270,000.00, and pay them the same interest that the <br /> S.B.A. would have paid in a similar situation. Mr. Amis said in the history of this <br /> project from the beginning, the P.E.D.C. was coming in as the S.B.A. Mr. Amis <br /> said that they have agreement on this interest which amounts to $12,131.50. <br /> <br /> Mr. Amis stated that Nations Bank, as the lead lender in preparing the equipment <br /> for sale, was out $12,458.33 to a company that was going to handle the auction <br /> and Nations Bank would like to be paid this amount. <br /> <br /> Mr. Amis stated that there are three (3) items which are the principle amount of <br /> $270,000.00, the interest and paying Nations Bank for their obligation. Mr. Amis <br /> stated that the sum total was a little over $300,000.00. Mr. Amis stated that this <br /> amount had been outstanding for a long time with the bank group. Mr. Amis <br /> advised that the other part of the agreement was that the Board would agree to <br /> sell the equipment subject to the current prospect's failure to complete the <br /> purchase. Mr. Amis said that after the equipment auction, the proceeds would be <br /> used to reimburse the banks the remainder of the amount owed to them, and if <br /> there is anything left at that time then it would be returned to the P.E.D.C. Mr. <br /> Amis stated he would be glad to answer any questions concerning this item. <br /> <br /> After discussion, President Fendley called for a motion. Boardmember Rhodes <br /> made a motion, seconded by Boardmember Barney Bray to pay off the loan <br /> guaranty to the local bank consortium as outlined by Mr. Amis. The motion <br /> carried unanimously, <br /> <br /> <br />