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TORRINGTON, Wyo. To get the complete story
regarding negotiations on assurances for crop payments to their
growers, Holly Sugar and the Platte Valley WyoBraska Sugarbeet
Growers Association granted a joint interview Wednesday afternoon.
Dave Hinman, president of the association, and
Rick Griffith, agriculture manager for Holly, said it was important
to both the growers and the industry to get the correct information
to the producers and the community.
"What we did was a good faith effort to
take assurances a step beyond the administrative claimant
clause," said Hinman. "Its Hollys way of looking at
staying in business and its a way for growers to stay in
business, too."
According to Griffith, Holly has been working
with the growers on matters concerning the companys filing for
Chapter 11.
"The administrative claimant document
specifies growers as critical suppliers, but the growers wanted
additional assurance they would be paid for their 2000 crop. In
return, Holly needed assurances that wed have adequate acres to
maintain the viability of the factory."
The agreement calls for growers to plant at
least 50 percent of the acres they grew last year, and they will
receive full payment for their 2000 crop.
"The 50 percent was Roger Hills
idea," Hinman said. "It allows growers to cut back and
still gives them flexibility. But others can grow more if they want
to."
Hinman said the agreements are on a per grower
basis, not company wide.
For those who do grow under this agreement,
there is the added assurance of payment. Those who elect to not grow
will be paid under the administrative claimant clause, which puts
critical suppliers right behind the companys bankers.
Details on payment for the 2001 crop are still
being worked out, according to Griffith. He expects they will be
completed by weeks end.
An option being discussed is to take a lien on
the 2001 crop. The lien would be released in order to get the check
for the 80 percent payment in the fall. Hinman said a new state law
is being worked on now that would further protect the growers.
Another option is a spring lease, in which, if
the company didnt run the factory, the growers could lease and
operate the facility. Then the growers would have total control of
the crop.
Hinman said Holly and the association have
included bankers in these negotiations, and they expect to finalize
details in a few days.
Griffith said he has not been told by any bank
that it will not loan to growers wanting to contract with Holly.
"The financial lenders have been involved all along, and I
havent been told they wont make loans," he said.
"The bankers are willing to stand behind
us," Hinman said. "They were at our last meeting and have
been brought up to date. The viability of the factory and the
economy of Torrington and the rest of the community are a big item
to them. They wouldnt want to hurt the economy that way."
Regarding lack of payment to some vendors doing
business with Holly, Griffith said the company has been in touch
with them or will be. Pre-filing bills and post-filing bills have
been paid, but those that were rendered from about mid-December to
mid-January seem to be caught in limbo in the court system.
"They will be paid," Griffith said.
"The court has the bills, and they will be paid."
Hinman said the association is working with
Holly to contract acres and moving forward.
"We hope to contract enough acres to open
the factory," he said. "Thats our goal."
Griffith said the company intends to contract
the maximum number of acres and run the factory. At this point there
is no deadline nor a required number of acres.
"We have a unique partnership between
Holly and the growers," Griffith said. "Were working to
address concerns."
"Its a hard position to put a grower
in," Hinman said. "The company is looking at ways to keep
the factory running and at the same time keep the growers in
business, too. Its an important industry to all of us.". |