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Company has retained Credit Suisse First Boston as financial
advisor
Imperial Sugar Company (AMEX:IHK - news) announced today the
reduction of the size of the Board of Directors from 12 to 10,
reflecting the resignations of H.E. Lentz and Kevin O'Sullivan,
effective May 30.
The Company said that H. E. Lentz, Managing Director of Lehman
Brothers Inc., is resigning because he determined that the recent
establishment by Lehman Brothers of a significant position in
Imperial Sugar's 9 3/4% senior subordinated debentures could create
a future conflict of interest with his role as an independent
outside director. Mr. Lentz has been an Imperial Sugar Director
since 1993.
Kevin O'Sullivan, Chief Financial Officer of Greencore Group plc,
has been a director since 1996. Greencore, which owns approximately
15% of Imperial's common stock, has stated its shareholding in
Imperial is no longer a long-term trade investment and has discussed
with the Company its desire to effect an orderly disposal of its
holdings. For these reasons, the Company and Greencore believed it
would be appropriate for Greencore to reduce its representation on
the Board of Directors. David Dilger, Chief Executive Officer of
Greencore, continues as a director of Imperial.
James C. Kempner, Chief Executive Officer of Imperial, stated,
``The Board and officers of our company, and I personally, will miss
the counsel of these gentlemen. Jack Lentz's investment banking
experience has been particularly valuable in Imperial's growth in
size and diversity of operations in the seven years he has been a
director. Kevin O'Sullivan, with his long experience in the European
sugar industry, has provided a valuable perspective into our
industry.''
Mr. Kempner continued, ``We had previously retained the
investment banking firm of Credit Suisse First Boston (''CSFB``) to
advise us on raising additional equity capital and restructuring our
balance sheet in view of the unsettled nature of the domestic sugar
industry and the Company's relatively highly leveraged capital
structure. The Company will work with Greencore in the disposal of
its interest in Imperial as part of CSFB's ongoing assignment.''
Imperial Sugar Company is the largest processor and marketer of
refined sugar in the United States and a major distributor to the
food service market. The Company markets its products nationally
under the Imperial(TM), Dixie Crystals(TM), Spreckels(TM),
Pioneer(TM), Holly(TM), Diamond Crystal(TM) and Wholesome
Sweeteners(TM) brands. Additional information about Imperial Sugar
may be found on its web site at www.imperialsugar.com.
Statements regarding future market prices, operating results,
synergies, sugarbeet acreage, future operating efficiencies, cost
savings and other statements which are not historical facts
contained in this release are forward-looking statements that
involve certain risks, uncertainties and assumptions. These include,
but are not limited to, market factors, the effect of weather and
economic conditions, farm and trade policy, the ability of the
Company to realize planned cost savings, the available supply of
sugar, available quantity and quality of sugarbeets and other
factors detailed in the Company's Securities and Exchange Commission
filings. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual outcomes may vary materially from those indicated.
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