| SANDUSKY -- Not only is Al Stoutenburg hoping for a good
growing season for his sugar beets, he also hopes to become a
part owner of the plant that processes his beets into table
sugar.
The cooperative that represents Stoutenburg and about 1,400
growers signed a letter of intent in late March with
Texas-based Imperial Sugar Co. to buy into Michigan Sugar Co.
Michigan Sugar has facilities in Croswell, Sebewaing, Caro and
Carrollton, said Richard Leach, executive vice-president of
the Saginaw-based cooperative.
The cooperative faced a minor setback last week when it
discovered it did not qualify for tax-exempt bonds to finance
the $65-million purchase. While financing still is being
determined to find the lowest interest rate, the growers'
cooperative is close to its goal of securing 127,000 acres, or
the amount of sugar beets processed annually at the Michigan
Sugar plants. The sale is expected to be complete on or before
Sept. 1 and must be approved by a federal bankruptcy
court.
"Sugar beets put a lot of money in the (Thumb)
economic circle, from buying cars to groceries," said
Stoutenburg, who along with his son, Clint, farms about 1,000
acres of sugar beets near Sandusky.
Imperial Sugar filed for financial reorganization under
Chapter 11 bankruptcy in January. The company refines raw cane
sugar at four plants in Florida, Georgia, Louisiana and Texas
and produces beet sugar at 11 plants in California, Michigan,
Missouri and Wyoming.
Leach said Michigan Sugar has about 110,000 acres of sugar
beets contracted for processing this year. He said he is
fairly confident 125,000 acres will be secured.
"We have enough acres now to run all four of the
plants and to proceed like we always have," Leach said. |