Ethanol Plant Owner Settles with Contractor; Hopewell Lawsuit Still Pending
by Markus Schmidt (Progress-Index) While Hopewell’s lawsuit against the owner of the Appomattox Bio Energy Plant over a $5 million letter of credit is still pending and the city has not yet collected taxes from the plant, the company has completed an agreement with the former prime contractor over a claim of $25.6 million.
In February, arbitrators ruled that Appomattox Bio Energy LLC – the mother company of Osage – shall pay Agra Industries the sum of $4.1 million for construction services. The company shall also pay a 6 percent annual interest on any unpaid balance from February until paid. The Progress-Index was not able to confirm last week if Osage has fulfilled payment obligations, but there is not indication of further legal procedures.
“I’m surprised at this. Why did Agra get their money and we don’t get our money?” Hopewell Vice Mayor Wayne Walton said on Friday. “We really have to step up to the platter and look into this.”
Walton, however, is not worried that there may be no money left in the pot when Hopewell settles their claim with Osage. “These people got tons of money if they can afford to keep a $200 million plant closed,” Walton said. “But why did Agra get paid and we have to wait?” READ MORE