Imperial Sugar Company is considering filing for Chapter 11 bankruptcy as part of financial restructuring in fiscal year 2001, according to a recent news release.
James C. Kempner, president and CEO, said suppliers and other trade creditors will continue to be paid in full and on time. Company operations will continue as well.
The company has indicated it is not in compliance with certain financial obligations. In fact, it has not paid $12.2 million in interest that was due on Dec. 15 on $250 million of Senior Subordinated Notes.
Imperial and its senior lenders have entered into an interim waiver agreement delaying payment on the interest until Jan. 8, 2001. Senior Credit Agreement lenders will continue to provide working capital to finance the company's operations.
Net sales for the fourth quarter totaled $457.2 million resulting in a loss of $37.1 million. Much of the loss was attributed to low sales prices for refined sugar and high energy costs.
The company will discontinue operations at its Northern California sugarbeet factories, Tracy and Woodland, in late December and has ceased refining operations in its Clewiston, FL, cane plant.