Mississippi Phosphates committee objects to motion to sell assets

By Mark Reccek

Bethlehem, Pa., Sept. 18 – Mississippi Phosphates Corp.’s official committee of unsecured creditors objected to the company’s motion to sell unencumbered assets, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Mississippi.

According to the filing, the company is attempting to sell certain intangible assets without authority, including certain avoidance actions and actions against officers and directors.

Specifically, the company is attempting to sell plant machinery, equipment and inventory, including the phosphogypsum stacks, ditches and ponds for process water management and the wastewater treatment equipment.

“These attempts do not comply with the sales procedure order or the stipulation and settlement agreement, and are specifically prohibited by the documents,” the filing said. “The debtors have failed to account for this significant change in sales terms and have failed to describe any additional consideration that is being offered for the purchase of these additional assets.”

Additionally, the filing said pursuant to the sales and bidding procedures and the stipulation and settlement agreement, the company agreed and was prevented from selling any avoidance actions described under Chapter 5, any claims or causes of actions against company officers and directors and any of the insurance proceeds relating to company officers and directors.

Mississippi Phosphates, a Pascagoula, Miss., fertilizer company, filed for bankruptcy on Oct. 27, 2014. The Chapter 11 case number is 14-51667.

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