| Imperial and Holly Sugar officials attempted to establish a
comfort level with area growers and financial lenders during meetings
Thursday afternoon. James Kempner, CEO and president of Imperial Sugar,
Roger Hill, president and CEO of Holly Sugar, and William Schwer,
executive vice president and general counsel for Imperial, met with the
two groups in closed meetings at the Gering Civic Center.
"We understand the growers concerns about the Chapter 11,"
said Kempner. "To growers it is a mean word, and it gets them and
their bankers nervous. We came to answer their questions and do what we
can to keep the Holly factory in Torrington operating. That is important
to all of us, and we need the growers in order to do that."
Imperial Sugar, parent company of Holly Sugar, filed for Chapter 11
Jan. 16. At the same time, it also filed its plan of reorganization and
disclosure statement.
According to William Schwer, Imperials general counsel, May 2 was
set as a confirmation date when the court will approve the plan and
"we exit bankruptcy."
He explained the Sept. 30, 2001, date that has appeared in earlier
press releases is the outside date for approval and will only be used in
case of some unforeseen circumstance.
Regarding payment for their 2000 crop, the bankruptcy court authorized
the company to honor its contract with growers who supply sugar beets to
the company and to complete contract payments due growers for sugarbeets
delivered before the Chapter 11 petition was filed.
Schwer said growers were concerned over payment for the 2001 crop, but
that is covered in the petition as well.
"It is important that they understand the contract they sign with
the company this spring for the 2001 contract is covered in
"Administrative Claims" under the bankruptcy code," he
said. "That means the company has to pay for delivered beets.
"I think we made it clear today that the growers are
covered," Schwer said.
However, in order to raise the comfort level, Schwer said it is
possible to file an amendment to the Chapter 11 petition specifying the
growers in the Administrative Class order.
In that case, he said the company would give a 10-day notice and if no
objections were raised, the bankruptcy court would approve it.
"That would give the bankers a greater comfort level, too,"
he said.
Fred Kimmel, an Alliance area grower, said he thought the meeting was
positive and answered a lot of concerns pertinent to payment on the 2000
and 2001 sugarbeet crops.
"It seems there is a lot of friction between Holly and the Rocky
Mountain Cooperative, and I hope from now on, we can work together for the
common good."
Duane Wisroth with the USDA-RHS office in Torrington, Wyo., said a lot
of questions were clarified, but the question still remains as to the
price of commodities. He said that is what makes these financial decisions
work.
"The company is doing what is healthy for Imperial, but it is good
that upper management cares enough to come and listen to the
growers," Wisroth said.
"The purpose of our visit is to get the growers and bankers
comfortable with what were doing," said Hill, a former Lingle,
Wyo., resident. "I think the majority of those here today feel pretty
confident, and it wouldnt be possible without the country
bankers."
Dave Hinman, Wheatland, Wyo., grower and president of the WyoBraska
Sugarbeet Growers Association, said the meeting was positive and answered
a lot of issues.
"The meeting needed to be done in order to get information to the
growers," he said. "It cleared the air on the actual position of
the company and the Chapter 11." |