The motion, filed last Friday in the United States Bankruptcy Court Northern District of Georgia, compels Bobo to produce documents relating to the construction, financing and development of Ball Ground Recycling; the purchase and sale of property in which the facility is located; management and operation of the facility; and the use of bond funds given by the county.
The examination will take place Aug. 16.
The motion is the latest step in the ongoing battle to recoup money owed to the county after Ball Ground Recycling filed for Chapter 11 bankruptcy in May.
A judge on June 29 signed a consent order, ordering Bobo to leave the property and turn over any keys, documents or computer software relating to operating Ball Ground Recycling.
The county commission created the RRDA in 2006 and approved the bond rate for a maximum of $18.1 million in bonds.
The bonds were used to relocate Bobo’s company from its former location on Blalock Road near Holly Springs to its present site on Highway 5 just south of Ball Ground.
The county guaranteed financing through the issuance of bonds through the authority.
Bobo was originally under a lease agreement with the authority to pay $100,000 a month in bond payments on $18.1 million borrowed by the authority to purchase land and equipment for the operation.
Bobo had made payments for about two years, or about $2 million in payments on the debt.
Then last year, the county was notified by the Bank of New York that Bobo was no longer making payments into the escrow account, and the county was obligated to start making the payments.
The county had to make $1.2 million in payments last year and still has to pay an additional $608,171.28 this year.
A total of $1.2 million was originally due on a yearly basis, with the county placing $101,000 into an escrow account for the purpose of making semi-annual debt service payments.
Post a Comment