A Roswell company that set its sights on bus manufacturing, but went bust in 2008 after borrowing millions from the state and the city of Roswell, largely exited Chapter 11 bankruptcy earlier this the month.
Millennium Transit Services LLCâ€™s plan of reorganization was approved by a judge on Feb. 11, which essentially marks the companyâ€™s exit from bankruptcy protections. The order came years after the company borrowed $4,320,000 from the New Mexico State Investment Council, the city of Roswell and Pioneer Bank. The city of Roswell contributed nearly 48 percent of the loan amount from the three entities â€” totaling $2,070,000.
According to City Manager Larry Fry, the company has been current in its interest payments to the city, and is in the beginning stages of repaying the principal on the loan. â€œWe believe that the city remains to be secure,â€ Fry said.
A spokesman for the State Investment Council, which contributed $2 million of the loan, also confirmed that this monthâ€™s payment from Millennium Transit Services included interest and principal. The news falls short of meaning that the company will immediately begin manufacturing buses, as it originally set out to do.
Rather, it means that the principal on the loan from the cityâ€™s Urban Development Action Grant Revolving Loan Fund will be paid. â€œThe debtor is current and so they are performing,â€ said Clarke Coll, the attorney representing the Pioneer Bank Group, which represents the bank, city and stateâ€™s interests.
â€œThey will pay the secured creditors accordingly.â€ Despite what the future may hold for the company, Fry says he remains confident that the Pioneer Bank Group will be made whole since it remains a secured creditor.
â€œBoth because the loan remains current … along with the cityâ€™s security interests,â€ he said, referring to the companyâ€™s building and equipment.