| During a meeting Tuesday, Holly growers were urged to
continue to grow sugar beets if they could get a written agreement stating
they would be paid for the 2000 and 2001 crop. Randon Wilson, the Salt
Lake City based attorney representing the Rocky Mountain Growers
Cooperative in a buyout of Western Sugar and the Holly growers in a
possible buyout of their factories, said he has taken some heat from
Imperial Sugar for some of the things he has said lately. Imperial Sugar
is Holly Sugar's parent company.
Wilson told the group he has been accused of "trying to recruit
Torrington growers to buy into the Rocky Mountain Growers Cooperative so
the Torrington factory couldn't operate and they could buy it
cheaper."
Wilson said he believes the area needs to "maintain viability
among all the sugar beet growers."
Wilson told a group of 100 growers that they need to "lift where
they stand."
"We need to preserve both systems," Wilson said. "If
they combine together one day that will be fine, but, more importantly, we
need to have two strong viable systems."
Wilson told the group that one of the nine sugar factories may need to
be closed one day. "But no one knows that for sure," he said.
"I urge the growers to come in out of the cold and grow sugar beets
so they can preserve their industry."
Wilson said he has been asked by the Michigan Sugar Beet Growers to
represent them during Imperial's bankruptcy proceedings. Wilson has been
working with the Michigan growers for over a year to purchase their
factories from Imperial.
Wilson said he and others he has recruited to help the Michigan growers
have started dialogue on how to protect the growers.
"We have had a conference call on how to get assurances from
Imperial so the growers can get paid for the 2000 and 2001 crops,"
Wilson explained.
Imperial has sought an order from the bankruptcy court allowing them to
pay growers for the rest of the 2000 crop. Wilson stressed that Imperial
got permission from the court to pay growers for the crop, but they aren't
required to pay.
Wilson said Bill Schwer, executive vice president and general counsel
for Imperial, was asked to put it in writing that they will pay for the
2001 crop and refused to do so.
"Imperial has been told that growers can't get financing from
their bankers to grow sugar beets if they can't get written assurance that
they will be paid for their crop," Wilson said.
Wilson added that he anticipates Imperial will eventually put it in
writing and the bankruptcy court will approve it. "The growers need
those assurances for 2000 and 2001 in order to hold the grower base
together," Wilson explained.
When asked by a Holly grower whether or not to plant sugar beets for
the company this spring, Wilson responded, "If I was a grower, I
would not grow unless I was certain I would get paid." |