| Imperial Sugar Company, parent company to Holly Sugar
Corporation, has announced it is in the status of negotiations with
creditors for financial restructuring. The company reported its net sales
for the fourth quarter were $457.2 million, compared with $487.9 million
one year ago. It also reported a net loss of 37.1 million for the quarter,
compared to a net loss of $8.6 million for the same period last year.
Imperial attributes its decrease in net sales in its sugar segment as a
result of lower sales prices for refined sugar.
In addition, Imperial Sugar indicated that it was not in compliance
with certain financial covenants under its senior credit agreement on
Sept. 30, and it will not pay $12.2 million in interest on a $250 million
note that is due today. The indenture for notes provides a 30-day grace
period. The company and its senior lenders have made an agreement to waive
the interest payment through Jan. 8.
In spite of that sober news, local Holly officials said that it is
"business as usual in the area." According to Rick Griffith,
Holly ag manager, the factory is operating as normal.
"We're having a great campaign," he said.
"The PIK payment will be mailed to the growers on schedule, Jan
5," he added.
"We will finish (the current campaign) a day or two after
Christmas, and its going very well," said Leroy Schafer, district
manager for the Torrington factory. "We're going to contract the
optimum number of sugar beets for the Torrington factory for the upcoming
growing season for the 2001 crop," said Kelvin Thompsen, director of
agriculture for Holly and Spreckels Sugar Corporation.
Thompsen said there has been a lot of misinformation circulating.
"We're not Chapter 11," he said. "We're trying to
de-leverage our balance sheets to reduce debt, and the end result will
make us a much stronger company."
Thompsen said discussion regarding the intent of Holly grower interest
to purchase the three sugar factories in Torrington, Worland and Sidney,
Mont., and owned by Imperial Holly, would not be affected. Holly employs
125 year-round employees and 350 seasonal employees and contracts with
approximately 250 sugar beet growers in the Torrington area.
The factory's annual economic impact to the Torrington area is $27
million.
"We will continue to do business as we have since 1926,"
Thompsen said. "We will continue to pay our growers, our employees,
and our vendors in full and on time and honor all contracts." |