CHICAGO — Moberly, Mo., on Tuesday informed the trustee of $39 million of annual appropriation-backed revenue bonds that it won’t honor its pledge to repay the debt issued to help finance construction of a half-built artificial sweetener plant abandoned by a Chinese company.

The city also handed over control of the project site to trustee UMB Bank NA even as it continues negotiations with two potential investors. The city and the Moberly Industrial Development Authority distributed a joint statement announcing the city’s position and UMB posted a notice informing bondholders of the action.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.