| SUGAR LAND, Texas--(BUSINESS WIRE)--January 17,
2001--Imperial Sugar Company (AMEX:IHK) today announced that it has
obtained approval from the U.S. Bankruptcy Court in Delaware regarding
various motions it filed in connection with its chapter 11 bankruptcy
petition filed yesterday. At the same time, the Company filed both its
Plan of Reorganization ("Plan") and Disclosure Statement. The
hearing on confirmation of its Plan is set for May 2, 2001.
The Company was authorized by the Bankruptcy Court to pay all
pre-petition employee compensation and to continue its employee
compensation and benefit plans. In addition, the Company received limited
approval to pay pre-petition trade claims of its necessary on-going
suppliers and trade creditors who agree to extend credit on ordinary
terms. The Company is also authorized to honor its contracts with growers
who supply sugarbeets to the Company and complete the contract payments
due growers for sugarbeets delivered pre-petition. Finally, the Bankruptcy
Court approved the motion for the Company to honor pre-petition contracts,
agreements and payment obligations to customers and to continue customer
programs post-petition.
The Bankruptcy Court approved the Company's request for interim
debtor-in-possession financing ("DIP") of $30.0 million and
accounts receivables securitization financing of $110.0 million, pending a
final hearing on the Company's $85.0 million DIP and accounts receivables
securitization program set for February 6, 2001. The Company's current
unused availability under the interim DIP facility, combined with cash on
hand and availability under other facilities totals approximately $40.0
million.
Imperial Sugar Company is the largest processor and marketer of
refined sugar in the United States and a major distributor to the
foodservice market. The Company markets its products nationally under the
Imperial(TM), Dixie Crystals(TM), Spreckels(TM), Pioneer(TM), Holly(TM),
Diamond Crystal(T) and Wholesome Sweeteners(TM) brands. Additional
information about Imperial Sugar may be found on its web site at
www.imperialsugar.com.
Statements regarding the Company's ability to complete its
reorganization proceedings timely, the outcome of the reorganization plan,
the Company's ability to sustain current operations during the pendency of
the reorganization including its ability to maintain normal relationships
with customers, the ability of the Company to establish normal terms and
conditions with suppliers and vendors, costs of the reorganization
process, the adequacy of financing arrangements during the reorganization
period, future market prices, operating results, synergies, sugarbeet
acreage, future operating efficiencies, cost saving 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, the results of the
bankruptcy proceedings, court decisions and actions, the negotiating
positions of various constituencies, the results of negotiations, 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.
Contact:
Imperial Sugar Company
Mark Q. Huggins, 281/490-9587
Managing Director and
Chief Financial Officer
or
Investor Relations:
Morgen-Walke Associates
Gordon McCoun, Jeffrey Zack
Media Contact: Stacey Nield
(212) 850-5600 |