Explosion in Imperial Sugar Co. (NEW YORK) caused adverse effect on the shares of the company along with difficulty in claming the insurance and may be levied by heavy penalty because of violation of rules & regulations of Safety & Health Administration.

Penalty imposed could be upto $87 million which if imposed will be third highest according to OSHA report. One of the analyst stated that discoveries of OSHA report may cause insurance companies to make out reason to not to pay the insurance claims to the defaulting company Imperial Sugar Co.

The investigators revealed that warnings regarding explosive dust hazards in the Imperial Sugar Co. were duly given since 2002 based on company audit report, insurance records and other related documents, which shows that explosion is caused due to the negligence of the company and it can be prevented from this damage of money and lives.

The spark in the metal sliding caused due to collision of large bucket used to lift sugar in silo elevator which got loose and explosion took place. The Imperial Sugar Company denies the facts and allegations made by the investigators and analysts. The allegation and entire matter made negative impact on status of company by fall in shares of the company which is more than 9% on Friday. The company is going to report its third quarter report on 30th July as per schedules. Explosion