Parks Sausage loans extended before sale

It got an extra 10 years to repay $680,000 from city

February 13, 1999|By Mark Ribbing | Mark Ribbing,SUN STAFF

Before its Park Heights plant was bought by another meat company early this month, Parks Sausage Co. won extensions on two loans it is receiving from Baltimore.

Parks, which sold the plant to Philadelphia-based Dietz & Watson Inc. Feb. 2, gets a $500,000 Urban Development Action Grant and a $180,094 purchase money mortgage from the city.

Parks, which is continuing to market the Parks Sausage line by outsourcing production to other manufacturers, does not pay interest on either loan.

The two loans were to be repaid over 15 years, said Jeffrey P. Pillas, chief financial officer of Baltimore Development Corp. On Jan. 13, at Parks' request, the Board of Estimates extended the repayment period to 25 years.

"The amounts of money owed are no different," Pillas said. "There's no forgiveness of any debt." Pillas added that Dietz & Watson does not owe the city any money under the terms of the loans.

Parks was saved from bankruptcy in 1996 by the intercession of retired football stars Franco Harris and Lydell Mitchell and by the willingness of creditors -- including the city -- to structure loans on terms favorable to the struggling company.

"It's nice to be able to get an extension, to be able to buy some time and right the ship," said Mitchell, a Parks co-owner.

Pub Date: 2/13/99

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