Imperial Sugar sought Chapter 11 protection from creditors in January, after missing a payment on a $250 million loan. The reorganization allowed the Sugar Land, Texas-based company to raise more than $140 million by selling two company units.

Under the plan, approved by U.S. District Judge Sue Robinson in Delaware in a hearing today, noteholders and some other creditors will receive 98 percent of the shares in the restructured company. Current Imperial Sugar shareholders will divvy up the remaining 2 percent of the reshuffled shares and would also get stock options for another 10 percent under certain conditions.

``The plan has been overwhelmingly approved'' by creditors, Jack Kinzie, one of Imperial Sugar's lawyers, told Robinson during the hearing.

The confirmation ``is not likely to be followed by liquidation or further reorganization,'' said James C. Kempner, president and chief executive of Imperial Sugar, in an affidavit presented to the judge.

Robinson in March approved the sale of Imperial Sugar's low-calorie foods unit, which makes sugar-free and low-salt drinks, mixes and pureed foods, to Hormel Foods Corp. for $65 million.

Later that month, Imperial Sugar agreed to sell its Michigan Sugar Co. unit for $55 million in cash, $10 million in deferred payments and assumption of about $18 million in bond debt.

Founded in 1843, Imperial Sugar sells products under the Imperial, Dixie Crystals, Spreckels, Pioneer, Holly, Diamond Crystal and Wholesome Sweeteners brands.

The company, with $1.82 billion in fiscal 2000 sales, has sugar refineries in Texas, Georgia and Louisiana, as well as 11 factories from Michigan to California.

Imperial Sugar's shares fell 1 cent to 23 cents in over-the-counter trading.