Mercon Cut Off From Nicaragua Assets Over $30 Million Tax Claim

Mercon Coffee Corp. is in a “delicate dialog” with tax officials in Nicaragua who have taken control of the global supplier’s assets in the country, according to a lawyer for the company.

A judge in Nicaragua has appointed a tax administrator with the goal of preserving Mercon’s assets in order to satisfy a $30 million tax claim, Paul Keenan of law firm Baker McKenzie said Tuesday in a US bankruptcy court. Mercon disputes the validity of that claim, he said.

Even so, Mercon’s newly hired bankers from Rothschild & Co. are soliciting bids for the coffee company’s assets, hoping that ...