City officials say they've just learned the Proper Foods plant plans to close and aren't sure what they can do.
Luna County economic development executive Linda Smrkovsky told city officials late last week that she's looking at options but hasn't yet identified any.
The Deming Headlight reports the City Council approved the loan using state economic development funds in 2008.
Smrkovsky says about 125 workers make prepared frozen foods like tamales and stuffed peppers at the plant.
The loan required the company to maintain at least 100 full-time employees and make annual payments at a 3 percent interest rate.
City officials were unable to immediately provide the outstanding balance. Information from: Headlight, www.demingheadlight.com
(Copyright 2012 by The Associated Press. All Rights Reserved.)