City turns banker on $4.36 million BioNitrogen loan

Posted on April 15, 2016

The Perry City Council has agreed to purchase the $4.35 million loan taken out by BioNitrogen from Community and Southern Bank (C&S Bank) after the bank declared that the loan, for which the city had provided cash collateral, was in default following the company’s filing for bankruptcy.

At its Tuesday meeting the council unanimously approved the agreement, under which the bank agreed to return $4,363,050 to the city’s cash collateral account while the city agreed to use those funds to purchase the loan, placing the city in the position of the bank in regards to BioNitrogen.

PHOTO: R. Scott Williams, who represents the city in its bankruptcy suit with BioNitrogen, said assuming the loan “improves the city’s position and doesn’t cost you anything.”

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