| BAD AXE -- Sugar beet farmers are getting money from a cooperative
formed to purchase Michigan Sugar Co.
Area growers who filed a claim with Imperial Sugar, which filed for
financial reorganization under Chapter 11 bankruptcy earlier this year,
were notified by the company that they will be paid in full for the 2000
crop.
The United States Bankruptcy Court for the District of Delaware sent a
letter to growers about the agreement.
Checks should be received around Oct. 31 if not sooner, the letter
said, according to the Huron Daily Tribune on Monday.
The Michigan Sugar Beet Growers Inc. board of directors sent checks
representing $2.50 per ton on the 2000 crop.
In a letter to members of the cooperative, board members said they
continued to work with Imperial to close on the deal to purchase Michigan
Sugar around the end of the year.
The cooperative had until Oct. 1 to complete the transaction with
Imperial Sugar.
With that date here and gone, the growers board entered into a lease
agreement it had negotiated with Imperial if the deal was not finalized by
that date.
Under the lease agreement, the Michigan Sugar Beet Growers Inc. group
will pay Imperial Sugar $4 per ton for sugar beets delivered to the
facilities. According to Dick Leach Jr., executive vice-president of the
Great Lakes Sugar Beet Growers Association, group members can purchase the
factory from Imperial at any point until Feb. 28, 2002. After that, the
deal with Imperial is dead.
Leach said the deal has been taking so long because getting everything
agreed upon with Imperial while the company was in bankruptcy, required
the bankruptcy court's approval.
"Most of the issues have been worked out," he said.
"Even though we didn't get the deal closed when we wanted, we still
are going to be able to purchase the company. If growers out there are
having a problem getting financed, we will help them. We have a pool of
$2.5 million. We can work with them, and we're willing to sign them
up." |