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i <br /> 1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> MEETING DATE: October 15, 1996 <br /> Action Agenda <br /> Item # 7 q <br /> SUBJECT: MPC Packaging Corporation Debt Restructuring - Tax Equity <br /> Fairness Responsibility Act (TEFRA) <br /> DEPARTMENT: Economic Development PUBLIC HEARING: X Yes No <br /> ATTACffi�ENT(S) : INFORMATION CONTACT: <br /> Agenda Materials - August 6, 1990 Geoffrey Gledhill (732-2196) <br /> Proceedings of the O.C. <br /> Industrial Facilities and <br /> Pollution Control Financing TELEPHONE NUMBERS: <br /> Authority - October 10, 1996 Hillsborough - 732-8181 <br /> Proposed Minutes of Public Hearing Durham - 699-7331 <br /> and Resolution Approving the Debt Mebane - (910) 227-2031 <br /> Restructuring in Principle Chapel Hill - 967-9251/ <br /> 968-4501 <br /> Purpose: To conduct a public hearing on the proposed debt <br /> restructuring of the Orange County Industrial Facilities and <br /> Pollution Control Financing Authority industrial revenue bonds <br /> which debt restructuring will permit the repayment of the bonds <br /> over a longer period of time. <br /> Background: On August 6, 1990 the Board of Commissioners approved <br /> in principle the Orange County Industrial Facilities and Pollution <br /> Control Financing Authority's issuance of $5.5 million in <br /> industrial revenue bonds to pay for facilities and equipment for an <br /> expansion of Mebane Packaging Corporation (now MPC Packaging <br /> Corporation) . Under the terms of the Trust Indenture involving the <br /> Authority, Mebane Packaging Corporation and a bank trustee, the <br /> bonds are. to be repaid in full on October 1, 2001. As the result <br /> of a significantly greater and better banking relationship between <br /> MPC Packaging Corporation and First Union National Bank of North <br /> Carolina, the bank securing the bond payments, an agreement has <br /> been reached to permit the payment of the bonds not yet paid over <br /> a longer period of time, with the final payment becoming due on <br /> January 1, 2006. <br /> The Orange County Industrial Facilities and Pollution Control <br /> Financing Authority approved the debt restructuring of its bonds at <br /> a meeting it held on October 10, 1996. <br /> Recommendation: Conduct the TEFRA public hearing and approve the <br /> debt restructuring in principle by approving the resolution <br /> accompanying this abstract. <br />