The special delivery? A check issued by Michigan Sugar Beet Growers Inc. as well as notification that the former bankrupt company Imperial Sugar has decided to pay growers who submitted a claim for the 2000 crop - in full.

The nearly 50-page message from Imperial Sugar came as a surprise to area growers after they were given news by the growers board that their was little hope they would ever be paid in full for the 2000 sugar beet crop. The packet of information from the United States Bankruptcy Court for the District of Delaware included a "proof of claim" from Imperial's bankruptcy case.

The letter inside the packet sent to growers read, "Please take notice that on Oct. 11 Imperial Distributing Inc., agreed to pay growers in full their claims. We promise to pay you in accordance with the terms of your contract, and you should receive a check from us around Oct. 31 if you have not been paid already."

The claims forms were handed out early in 2001 during a number of meetings set up by the MSBG cooperative board as the board was trying to bring area growers together to purchase Michigan Sugar Co., from Imperial in order to keep the sugar industry alive in the Upper Thumb. It was up to growers to fill the forms out with the amount still owed to them by Imperial Sugar for the 2000 crop and then mail them in on time.

More than 4,000 proofs of claim were filed against Imperial. Of those claims, line after line are sugar beet growers, many from the thumb area, with claims ranging from $20 to more than a million dollars.

The news of Imperial paying its Michigan Sugar Co. growers in full also was a surprise to the MSBG board of directors. The board sent a letter on Oct. 15 to cooperative members that read "enclosed is a check representing $2.50 per ton on your Year 2000 crop. You will recall from the Offering Memorandum, the grower meetings and subsequent correspondence that our cooperative had indicated a desire to persuade Imperial Sugar to pay additional amounts on the 2000 crop. Since Imperial Sugar has seen fit to utilize the balance of the 2000 crop payment for inter-campaign repair and maintenance of the factories, they have not been willing to make any further payments on the Year 2000 crop, except the PIK payments which they are obligated by law to pay. We continue to work with Imperial on the purchase of Michigan Sugar, as well as on the procedure to deal with the final settlement on the 2000 crop. In the meantime, the cooperative board has determined that this advance of $2.50 per ton on the 2000 crop should be sent at this time. This will enable growers to complete their subscriptions to the cooperative pending resolution of payment issues with Imperial."

The letter closed by telling cooperative members that the buying process will resume so that the board can close on the deal to purchase Michigan Sugar around the end of the year.

"We hereby notify you that if you are a subscriber your subscription check will be cashed on Oct. 26," the board of directors stated in the letter to growers.

The checks written by growers were for membership of $50 per acre. The cooperative said they will be contacting members in the future for the remaining $150 per acre still due to meet the $200 per acre total.

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, MSBG members can purchase the factory from Imperial at any point until Feb. 28, 2002. After that, the deal with Imperial is dead.

"We're going as fast as we can at a snail's pace," said Leach. "It takes so long to get everything done. We are working diligently with lenders for the purchase. And we're still looking at getting more acres to make lenders happy, but we're not there yet. The only chance that Michigan Sugar Co. has for running in 2002 is if we purchase it."

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."

For more information about signing up more acres or the grower's pool, contact the Leach at (989) 792-1531. For information about full payment from Imperial Sugar, contact Susan Dillard at (713) 229-1985.