Imperial Sugar Company (OTC BB: IPRL) yesterday announced that it has signed a Letter of Intent ("LOI") to sell the capital stock of Michigan Sugar Company, which owns four sugarbeet factories in Michigan, to Michigan Sugar Beet Growers, Inc., a new Michigan agricultural grower-owned cooperative. The transaction is subject to the negotiation of a definitive agreement and approval by the Company's Board of Directors and the U.S. Bankruptcy Court for the District of Delaware as Imperial Sugar Company filed a petition for relief under chapter 11 of the U.S. Bankruptcy Code on January 16, 2001. Terms of the transaction include a cash payment of $55 million upon closing, deferred payments of $10 million and the assumption by the cooperative of $18.5 million in industrial development bonds.