Imperial Sugar Settles $345 Million Insurance Claim

(BUSINESS WIRE)--Imperial Sugar Company (NASDAQ:IPSU) announced that it settled the property insurance claim for the February 2008 industrial accident at its Port Wentworth, Georgia refinery for an aggregate of $345 million. The Company expects to recognize pre-tax gains of approximately $278 million in its first fiscal quarter ending December 31, 2009, as a result of the settlement. A final $45 million payment on the claim is expected to be received in early January. Previously the insurers had provided advance claim payments aggregating $300 million under the $350 million policy which provides for replacement cost coverage of physical property damage and business interruption coverage.

About Imperial Sugar

Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. The Company markets products nationally under the Imperial®, Dixie Crystals® and Holly® brands. For more information about Imperial Sugar, visit www.imperialsugar.com.

Statements regarding future market prices and margins, refinery construction costs, timelines and operational dates, future expenses and liabilities arising from the Port Wentworth refinery incident, the timing of final insurance payments, future costs and liabilities arising from the Louisiana Sugar Refining LLC venture, future import and export levels, future government and legislative action, future operating results, future availability and cost of raw sugar, operating efficiencies, results of future investments and initiatives, future cost savings, future product innovations, future energy costs, our liquidity and ability to finance our operations and capital investment programs, future pension plan contributions and other statements that are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. These risks, uncertainties and assumptions include, but are not limited to, market factors, farm and trade policy, unforeseen engineering and equipment delays, results of insurance negotiations, our ability to realize planned cost savings and other improvements, the available supply of sugar, energy costs, the effect of weather and economic conditions, results of actuarial assumptions, actual or threatened acts of terrorism or armed hostilities, legislative, administrative and judicial actions and other factors detailed in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

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Imperial Sugar Updates Port Wentworth Rebuild Project

(BUSINESS WIRE)--The Imperial Sugar Company (NASDAQ:IPSU) updated the status of its project to rebuild its Port Wentworth, Georgia, refinery which was extensively damaged in an industrial accident in February 2008. The Company reported that through March 31, 2009, it had spent approximately $54 million of the estimated $200 million to $220 million construction costs. The Company’s property insurance policy provides coverage for construction replacement cost, as well as business interruption and certain payroll and other costs. The Company received an additional $35 million advance under the property insurance policy in March 2009.

Advances, which total $160 million to date, are not identified with any specific coverage under the policy. Imperial expects to begin producing granulated bulk sugar at the facility in late May of 2009 and complete restoration of the packaging capabilities by the fall of 2009. The Company also reported that as of March 31, 2009, it had cash balances of $79 million and available, undrawn revolving credit capacity of $55 million, after deducting $30 million of outstanding borrowings under that facility.

John Sheptor, Imperial’s President and CEO, said, “The rebuild project continues to progress nicely and we are on track to begin bulk sugar production in late May. Our employees are enthusiastic about the project and we are working closely with our customers and suppliers to coordinate the restart of the refinery. Discussions with representatives of our insurance companies continue productively, and an additional $35 million of advances were received in March.”

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Imperial Sugar Updates Port Wentworth Rebuild Project

(BUSINESS WIRE)--The Imperial Sugar Company (NASDAQ:IPSU) provided an update on the project to rebuild its Port Wentworth, Georgia refinery which was extensively damaged in an explosion and fire in February 2008. The Company reported that through February 28, 2009, it had spent approximately $44 million of the estimated $200 million to $220 million construction costs.

The Company’s property insurance policy provides coverage for construction replacement cost, as well as business interruption and certain payroll and other costs. Through February 28, 2009, the Company had received $125 million of advances under the property insurance policy, which are not identified with any specific coverage under the policy.

As previously announced, Imperial expects to begin producing granulated bulk sugar at the facility in the spring of 2009, and complete restoration of the packaging capabilities by the fall of 2009. Additionally, at February 28, 2009, the Company reported it had cash balances of $40 million and had available, undrawn revolving credit capacity of $50 million, after deducting $30 million of outstanding borrowings under that facility.

John Sheptor, Imperial’s President and CEO said, “We are pleased with the progress of the rebuild project. The foundation of the new silos was completed in February and substantial portions of the structural steel, walls, ceilings and floors for the packaging and administrative buildings have been erected. The new drying granulator for the refinery has been installed and other repairs to damaged areas are significantly advanced. All major equipment has been ordered and is being expedited by suppliers. Productive discussions with representatives of our insurance companies continue, and an additional $15 million of advances were received in February. Our customers continue to be very supportive and look forward, as we do, to the Port Wentworth refinery coming back on line.”

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