| CARROLLTON, Mich. -- The long-awaited sale of Michigan Sugar Co. to a
sugar beet growers' cooperative should be completed in February, an
official says.
Negotiations have been under way for about two years for sale of the
sugar processing company by Texas-based Imperial Sugar Co.
Michigan Sugar Beet Growers Inc., a cooperative of about 1,000 farmers
from 11 counties, negotiated with Imperial Sugar for nearly two years to
buy Michigan Sugar.
"This is the best thing that came along in a long time," says
co-op member Charlie Bauer, a sugar beet grower from Saginaw County, Mich.
He says the deal should be signed in early to mid-February.
A federal bankruptcy court also must approve the sale.
Filed for bankruptcy
Michigan Sugar has processing plants in Saginaw County's Carrollton
Township, Caro, Croswell and Sebewaing, Mich.
The deal faltered in January when Imperial filed for Chapter 11
bankruptcy.
Don Keinath, a farmer in Tuscola County's Almer Township, says he has
high hopes that the deal is final, but says "it's never done till
it's done."
The key to the sale came when Imperial Sugar dropped its original
asking price from $55 million to $35 million and state lawmakers approved
a no-interest $5 million five-year loan.
Michigan Sugar executives have discussed the sale with growers who have
contracts with Michigan Sugar and others interested in joining. Those who
sign contracts before Dec. 21 can become co-op shareholders for $200 an
acre. After that, the price jumps to $230 an acre.
The co-op contracted about 120,000 acres of sugar beets this year.
Officials expect that to increase in 2002. |