Financial woes for state-backed cane mill

Baton Rouge, LA (AP) - Louisiana's agriculture chief says a cane syrup mill in Lacassine that was financed with help from the state is in danger of being seized by creditors.

Louisiana Green Fuels is buying the mill from the state, but Agriculture Mike Strain said Friday that the company is three months late in making a $2.9 million mortgage payment to the state. He says that the company also is in danger of defaulting on a bank loan that could result in seizure of the mill.

The state guaranteed the bank loans with the approval of Strain's predecessor, Bob Odom. Strain said he is asking Louisiana Green Fuels to pay $6.3 million due to the banks over the next 36 months, and then make payments to the state.

Copyright 2012 KPLC. All rights reserved.