| Farmers and processors may be frustrated over a delay in the
proposed buyout of Western Sugar, but in spite of this latest
development, details of the purchase are still being
finalized.
According to a joint release from the co-op and processors
on Saturday, more time will be needed for the Rocky Mountain
Sugar Growers Cooperative to obtain its bank funding to
complete the purchase of Western Sugar Company.
The extension was announced by Clive Rutherford, president
of Tate & Lyle North America Sugars, and Rick Dorn,
chairman of the cooperatives board of directors.
According to the announcement, delays in obtaining
appraisals had caused delays in the co-op securing its bank
funding. The closing has been extended to the end of the
second quarter, or June 30, 2001, to allow more time to
acquire the necessary financing.
The Western Sugar field staff will continue to contract
with growers in anticipation of the closing. Growers were
encouraged to plant on their regular schedule and to prepare
for cooperative ownership as the loans and closing are
completed.
Robert Bob Busch, Mitchell area farmer and a member
of the RMSGC board, said Saturday evening the sale is still a
go.
Were very positive about this, Busch said. We
believe this co-op is the future of the Valley.
According to Kevin Hall, Bridgeport area farmer and vice
president of the RMSGC, the delay is not a cause for concern.
We knew March 31 was aggressive, he said. We just ran
out of time, but its still a go and it will happen.
Busch and Hall were among those in Salt Lake City late last
week planning to sign the purchase agreement in the office of
cooperative attorney, Randon Wilson.
Rutherford said Tate & Lyle will continue to do all it
can to assist the cooperative in closing its loans and
completing the purchase.
Dorn said the board knew the March 31 closing date was
aggressive, but had hoped to complete the sale by that date.
Transactions often experience delays, Dorn said.
We appreciate the cooperation of Tate & Lyle and look
forward to a smooth transition during the second quarter of
2001.
The co-op was formed in July 2000 to explore the possible
purchase of Western Sugar after Tate & Lyle announced that
Westerns six sugar beet processing factories were for sale.
A $78 million selling price was agreed upon in October
2000, and the cooperative has been attempting to secure
funding since then. Growers have subscribed at the rate of
$185 per acre, and lender banks have been contacted to secure
the remainder of the necessary financing.
Letters will be sent to growers early this week with more
information regarding the extension. |