| The closing date for the buy-out of Tate & Lyles Western Sugar
factories by the Rocky Mountain Sugar Growers Cooperative (RMSGC) was last
set for sometime in August.
Now, with sugar beet harvest set to begin next week and no closing yet,
growers are beginning to wonder about the ownership of their contracted
acres.
They have contracted with the cooperative, and thats where theyll
stay, said Randon Wilson, attorney for RMSGC in a telephone interview
Wednesday.
The latest announcement is that the closing date has now been postponed
for the end of harvest, in December or possibly as late as January.
According to Wilson, Tate & Lyle has promised to process the 2001
crop while the paperwork is being finalized.
Wilson remains optimistic and forward thinking about the transaction.
Were not trying to strong-arm producers, were trying to save
an industry, he said.
The latest snag comes with the provisions that determine the collateral
needed to secure the transaction.
Wilson said that all the loans are in place; however, existing sugar in
the storage bins at the Western facilities does not meet the amount
necessary for collateral. Until more sugar is in the bins, the loans
cannot take effect.
Wilson said once the bins begin to fill from this falls harvest, the
cooperative lenders would have the collateral needed.
Wilson praised these lenders for standing by the cooperative in their
efforts to buy the sugar processing facilities in four states.
Even through the latest disaster this nation is facing, theyre
with us all the way.
Wilson said a conference call between Tate and Lyle and RMSGC will be
held Thursday to attempt to set a definite closing date.
In the meantime, all parties remain optimistic. This has been a huge
transaction, Wilson said. But we will accomplish it. |