| New York, New York, Mar 29, 2001 (Market News Publishing via
COMTEX) -- Imperial Sugar Company announced that it has signed
a Letter of Intent ("LOI") to sell the capital stock
of Michigan Sugar Company, which owns four sugarbeet factories
in Michigan, to Michigan Sugar Beet Growers, Inc., a new
Michigan agricultural grower-owned cooperative. The
transaction is subject to the negotiation of a definitive
agreement and approval by the Company's Board of Directors and
the U.S. Bankruptcy Court for the District of Delaware as
Imperial Sugar Company filed a petition for relief under
chapter 11 of the U.S. Bankruptcy Code on January 16, 2001.
Terms of the transaction include a cash payment of $55 million
upon closing, deferred payments of $10 million and the
assumption by the cooperative of $18.5 million in industrial
development bonds.
Under the terms of the LOI, the cooperative must have
secured financing and subscribed sugarbeet growers by October
1, 2001, to complete the transaction. In the event the closing
is delayed beyond that date, the LOI provides that the Company
will manage the four Michigan factories and market the refined
sugar processed under a lease and management agreement with
the cooperative in order to process the 2001 crop. Imperial
Sugar Company and the cooperative will enter into a sales and
marketing agreement under which the Company will continue to
market the refined sugar processed by Michigan Sugar Company
following the sale.
"We are happy that we and our Michigan Sugar Company
growers have been able to reach agreement on this important
transaction. It is a win-win situation for both parties. It
enhances Imperial Sugar Company's financial restructuring
plans, while enabling the Company to derive a significant and
continuing income stream from its marketing services. As the
new owners, the Michigan growers will be better able to
control their own future in the domestic sugar industry,"
stated James C. Kempner, President and Chief Executive Officer
of Imperial Sugar Company.
Imperial Sugar Company is the largest processor and
marketer of refined sugar in the United States and a major
distributor to the foodservice market. The Company markets its
products nationally under the Imperial(TM), Dixie Crystals(TM),
Spreckels(TM), Pioneer(TM), Holly(TM), Diamond Crystal(TM) and
Wholesome Sweeteners(TM) brands. Additional information about
Imperial Sugar may be found on its web site at www.imperialsugar.com.
Statements regarding the Company's ability to complete its
reorganization proceedings timely, the outcome of the
reorganization plan, the Company's ability to sustain current
operations during the pendency of the reorganization including
its ability to maintain normal relationships with customers,
the ability of the Company to establish normal terms and
conditions with suppliers and vendors, costs of the
reorganization process, the adequacy of financing arrangements
during the reorganization period, future market prices,
operating results, synergies, sugarbeet acreage, future
operating efficiencies, cost saving and other statements which
are not historical facts contained in this release are
forward-looking statements that involve certain risks,
uncertainties and assumptions. These include, but are not
limited to, the results of the bankruptcy proceedings, court
decisions and actions, the negotiating positions of various
constituencies, the results of negotiations, market factors,
the effect of weather and economic conditions, farm and trade
policy, the ability of the Company to realize planned cost
savings, the available supply of sugar, available quantity and
quality of sugarbeets and other factors detailed in the
Company's Securities and Exchange Commission filings. Should
one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes
may vary materially from those indicated.
CONTACT: TEL: 281/490-9587 Mark Q. Huggins, Managing Director and
Chief Financial Officer
Imperial Sugar Company TEL: 212/850-5600 Investor Relations: Gordon McCoun, Jeffrey Zack
Media Contact: Steve DiMattia
Morgen-Walke Associates
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