The Webster Progress-Times

WALTHALL - A local industry in default to the county is asking for a loan repayment moratorium because it is experiencing tough times.

Plant Manager Jerry Riggan of Front Line Apparel Group addressed the Webster County Board of Supervisors about the issue on Nov. 17. Front Line, a military apparel contractor, started operations in February 2007 in the former Red Kap building, which it is leasing.

The county made an economic development loan to FLAG from a Community Development Block Grant awarded by the Mississippi Development Authority. The principal amount was $237,500 at 3 percent interest. Webster County has been repaying MDA with loan payments made by the company.

This past July, the county board voted to request a budget modification from MDA to provide an additional $250,000 loan to Front Line Apparel, which the authority did approve. Repayment of that loan is supposed to begin in February.

According to discussion at last week's meeting, FLAG has made 16 loan payments and has 14 remaining on the first loan. The last payment was made in September and the company owes the county $160,000 total on its first note. Front Line executives, who live in Connecticut, wrote the board a letter in October requesting a loan repayment moratorium, officials indicated

Riggan told board members that Front Line has not had a cash flow since July, when its previous glove contract ended earlier than expected. The company's next contract, which is for Army utility coveralls, was not ready to start production at that time because of issues with fabric delivery and quality, he said.

"We've had to lay people off and call them back," he said, stating later that Front Line now has about 35 employees. FLAG has since contracted with a second supplier that is more reliable, and Riggan said it Front Line can hire 15 more employees after the fabric is delivered and tested.

"We're asking for a little help to make it through ... hard times," he said. "We want to succeed."

Riggan asked for a four-month grace period (October-January) in repaying the loan until Front Line can re-establish its cash flow in February. "We're bidding everything we can," he said.

Board attorney Buchanan Meek Jr. pointed out that interest is also accumulating while the loan payments are not being made. When Riggan asked if this was costing the county anything, Meek replied that it was not "as long as you all pay this off."

After Riggan left, supervisors present agreed that the board needed to help the company if it could and discussed options with Meek. He agreed to prepare a new loan repayment schedule and related letter to be sent to Front Line executives. Meek planned to present this to the board for approval at its next meeting, which was to be Wednesday.

Ruthie M. Salley, interim District 2 supervisor, excused herself from the boardroom during this discussion because she is an employee of Front Line. This was her first meeting as a supervisor.

In other business, the board voted to appoint Salley to replace her late husband, Mart Salley, as the county's representative on the Local Workforce Investment Board sponsored by Three Rivers Planning and Development District. It also voted to allow District 2 road foreman Buddy Macon to sign logger permits.

Vice President Charles McClellan presided in the absence of board President Larry Crowley, who at that time was in the University of Vanderbilt Medical Center. He received a bone marrow transplant at the Nashville facility more than four months ago for leukemia. According to his web page on www.caringbridge.com, Crowley was to return home to Mississippi on Tuesday.