| An amendment to Imperial Sugar Company's Chapter 11
bankruptcy document was filed Feb. 2, specifically adding the definition
of "Postpetition Beet Growers Obligations" to the Debtors' Joint
Plan of Reorganization. Imperial, which is the parent company to Holly
Sugar Corporation, filed bankruptcy last month.
According to Leroy Schafer, district manager of the Torrington factory,
farmers who attended the Jan. 25 informational meeting in Gering, Neb.,
asked that as beet growers, they be designated as "Administrative
Claimants." The original bankruptcy document did not specifically
mention beet growers.
"Administrative claimants are considered critical suppliers,"
explained Rick Griffith, Torrington Holly Agricultural manager. "Our
sugar beet growers fall into that category; therefore, they're at the top
of the list to be paid."
"The sole purpose (of the amendment) was to designate the beet
growers as administrative claimants, which they already were, but they
wanted to see it in writing," Schafer added.
Schafer said that before Imperial Sugar corporate lawyers filed the
amendment, the document was reviewed by the Beet Grower Association in San
Antonio, Texas, and approved by the association's bankruptcy lawyers.
Griffith and Schafer also addressed reports that local vendors were not
getting paid by Holly.
"Some bills in Torrington have not been paid because they were in
the pre-petition phase," Griffith explained. "The pre-petition
bills are under the jurisdiction of the bankruptcy court. The terms of
payment for pre-petition bills are being looked at in Sugarland, Texas
(corporate headquarters). Each of the claimants is being contacted by a
corporate representative to work out the details of the payment under
Chapter 11 laws.
"All the bills in the post-petition have been paid and are still
being paid," he added. "There's considerable amount of
misinformation circulating through the county, and basically, we have
obtained this document to assure growers they will be paid." Griffith
said he and his staff have copies of the public document, and they will
give them to any grower who requests them.
The Torrington factory began contracting beet acreage Jan. 29.
"We do have room at all of our stations for additional
acreage," Griffith said, "and I encourage growers, if they have
any questions or concerns about the Chapter 11 or our contract, to give me
or the agricultural staff a call so we can answer any of those
concerns."
The ruling on Imperial's Chapter 11 bankruptcy is scheduled for May 2. |