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TORRINGTON, Wyo. When Imperial
and Holly Sugar Company officials met with area sugarbeet growers nearly
two weeks ago to discuss the companys Chapter 11 filing, a major
concern of the farmers was payment for the remainder of their 2000 crop,
and for a 2001 crop, if it was planted.
William Schwer, Imperial general counsel and executive
vice president, said after the meeting an amendment to the filing could be
done that would specify the growers in the Administrative Class order. The
amendment was filed Feb. 2, 2001, with the bankruptcy court in Delaware.
According to Rick Griffith, agriculture manager at the
Torrington Holly facility, the amendment was reviewed and approved by the
WyoBraska Sugarbeet Growers Association and its attorney.
"This is the document the growers wanted, and we have
it," Griffith said. "The growers always have been included in
the Administrative Claims, but now this document names them as
Administrative Claimants."
Administrative claims are those that are necessary to the
operation of the business, Giffith said.
According to Leroy Schafer, district superintendent at the
Holly factory, Imperial Sugar, Hollys parent company, filed the Chapter
11 in Delaware where claimants critical to the operation can be separated
from the others.
This document, "First Amendment to Debtors Joint
Plan of Reorganization," clarifies the status of the growers
regarding payment for their sugarbeets.
The growers are specified in a new category of "Postpetition
Beet Grower Obligations." These obligations are the obligations under
contracts entered into on or after the petition date between the growers
and Holly.
The growers are also specified in the new
"Administrative Expense" provision that covers costs and
expenses of administration.
In this section, it specifies that necessary costs for
operating the business includes, "without limitation, any
postpetition beet grower obligations to the extent not previously paid in
full by the debtors (Holly),..."
The Administrative Claim section of the Chapter 11 filing
addresses payment of claims. "Each holder of an Allowed
Administrative Claim shall receive the Allowed Amount of its
Administrative Claim, in Cash, in full satisfaction, settlement, release,
extinguishment, and discharge of such Claim on the Distribution
Date..." It further states the claims "shall be paid by
Reorganized Imperial in accordance with the terms and conditions of the
agreements establishing such liabilities."
In addition, the document states nothing in the Chapter 11
plan shall limit, restrict, or otherwise adversely affect any right or
remedy available on a grower obligation either by contract or under
applicable non-bankruptcy law.
The document requires that Imperial "shall maintain
sufficient liquidity to fund those obligations," also.
Griffith said this document should clear the air on
misinformation regarding the Chapter 11 filing and its ability to pay
grower obligations.
Copies of the document have also been made available to
area financial lenders, and may be acquired from the ag staff or on
Hollys website,
The Holly ag staff is in the field signing growers for the
2001 crop, Griffith said. Anyone wanting more information may call their
field man or Griffith at the office in Torrington. |