Imperial Sugar Files for Chapter 11 Protection

Imperial Sugar Co., the No. 1 U.S. sugar producer, filed for Chapter 11 protection from creditors, citing heavy debt the company has blamed on widening losses and high costs for energy and raw materials. In documents filed in U.S. Bankruptcy Court in Wilmington, Del., the Sugar Land, Texas-based company listed $1.09 billion in assets and $775 million in debt. Imperial Sugar said last month that it missed a payment on a $250-million loan and hoped to avoid bankruptcy by converting debt to equity. Under a plan that was negotiated in advance of the filing and requires a judge’s approval, note holders and some other creditors will receive 98% of the common stock in the restructured Imperial Sugar, the company said. The current holders of common stock in Imperial Sugar will get 2% of the shares in the restructured company under the plan. Shares of Imperial Sugar last traded Dec. 3 at 75 cents on the American Stock Exchange.