Mississippi Phosphates files for Chapter 11 Bankruptcy

Mississippi Phosphates files for Chapter 11 Bankruptcy

PASCAGOULA, MS (WLOX) - No layoffs. No furloughs. That's the word from Mississippi Phosphates as the company files Chapter 11 Bankruptcy.

Monday, the Pascagoula-based fertilizer manufacturer announced it would continue normal operations while moving forward with bankruptcy proceedings. The company said the move was necessary to obtain sufficient additional funding for its ongoing operations.

"We expect that through this filing, we can gain needed relief, secure an updated credit and funding facility and return to production operations in an expedited manner," said Stephen S. Russo, chief executive officer. "In addition to resuming operations, our plans call for the Company to continue maintenance and all environmental and safety programs during this reorganization."

Late last week, Mississippi Phosphates curtailed production of diammonium phosphate due to a shortage in raw materials. Most of its operations, however, continued without interruption. Those include sulfuric acid operations, ammonia terminal operations, dock and port operations and all environmental systems, controls and monitoring.

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