The Webster Progress-Times

County leaders are awaiting state approval of their plan to extend a moratorium on a loan payment from a Mathiston manufacturer.

The Board of Supervisors adopted a motion to do so Nov. 26. The order calls for extending a moratorium of four months on the payment from Front Line Apparel Group on its first loan from Webster County. The proposal is subject to the approval of the Mississippi Development Authority and after Front Line Apparel furnishes a financial statement as of Sept. 30.

The military apparel manufacturer has received two economic development loans from the county, which has been awarded grants by MDA to do so. Plant Manager Jerry Riggan told the board last month that FLAG has had fabric delivery and quality problems for the production of Army coveralls. As a result, the company has had no cash flow since July, he said in requesting the loan repayment moratorium.

The vote for the proposed moratorium was made following discussion with District Planner George Crawford. Board attorney Buchanan Meek Jr. also consulted by phone with an MDA official in Jackson, who told him any change in loan terms required its approval.

According to the "addendum to simple interest fixed rate note," the last payment FLAG made on the note was on Sept. 8. The company owes the county $115,773.20 on the obligation, plus interest.

If approved by MDA and agreed to by Front Line general partners Ron Levine and Victor Winogradow, the company would be required to make two payments to the county on Feb. 1: one payment for $1,379.76 for interest accumulated plus a regular payment of $8,227.06. The payments would then resume at the latter monthly rate, with full payoff still expected by Nov. 1.

Charles Rivers (District 3) moved to extend the moratorium and Robert Hitt (District 1) seconded his motion. Ruthie Salley, interim District 2 supervisor, did note vote, having recused herself because she is an employee of Front Line.

Vice President Charles McClellan presided in the absence of President Larry Crowley, who was unable to attend the meeting because of being ill. The bone marrow transplant recipient remains hospitalized at North Mississippi Medical Center in Tupelo.