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The co-op that has pushed to buy four
Michigan Sugar Co. processing plants for about a year is close
to reaching an agreement to buy the company.
Croswell City Manager Mike Steele on
Wednesday said Michigan Sugar sources have told him the
company has agreed to the farmers' terms and "they're
writing up the agreement right now."
A cooperative of hundreds of area farmers
formed about a year ago. The Great Lakes Sugar Beet Growers
Association, based in Sagniaw, represents about 1,400 growers.
Mr. Steele said the deal likely won't be
final until fall, but "baring some terribly awful,
unforeseen (thing), it's a done deal."
A formal announcement on the deal could
be made as early as today.
Michigan Sugar, which operates processing
plants in Croswell, Caro, Carrollton and Sebewaing, is owned
by Imperial Sugar Co. of Sugar Land, Texas.
The company filed for voluntary Chapter
11 bankruptcy in January. Michigan Sugar Co. spokesman
Mitchell Reno said the bankruptcy filing was for financial
reorganization purposes.
Imperial Sugar Co. lawyer Roy Cordes said
the proceedings with the farmers' group is ongoing.
"It has not been sold," he
said. "We are still in discussions."
The co-op was prepared in January to
offer $60 million for the company. It is unknown on what price
the two parties may have agreed.
To keep Michigan Sugar running in
Croswell is vital to the health of the city, Mr. Steele said.
Michigan Sugar is Croswell's largest employer and likely is
the city's largest electrical user, he said.
The plant employs about 60 people full
time and about 150 people during beet processing in the fall
and winter.
The possible sale is reassuring for the
city's economy, Mr. Steele said.
"It's probably one of the most
important things to happen, if not this year, for a long
time," he said.
"If we lose Michigan Sugar, we can
kind of roll up the sidewalks and go out of business." |