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(AP) -- The city of Moberly has no plans to pay off $39 million of bonds issued on behalf of a failed artificial sweetener factory.

The Moberly Monitor-Index reported Tuesday the city is opting to default on the bonds and allow the project to be taken over by the bond trustee, which is UMB Bank. The city says the bond financing agreement imposed no legal obligation on it to appropriate money for the bonds.

The bonds were intended to finance the construction of a facility for Mamtek U.S. Inc. But the company missed a bond payment due Aug. 1 and has halted work on the plant.

Corey Mehaffy is chairman of the Moberly Industrial Development Authority. He says it would be risky for the city to make the bond payments.

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