Mr David Dilger has been quite candid in admitting that Greencore's investment in US sugar producer Imperial Sugar - the former Imperial Holly - was a disaster. Greencore has now written off its investment in Imperial at a cost of €63.3 million (£49.8 million) - a very sensible move given recent events at the US company.

This week Imperial went into Chapter 11 bankruptcy protection, hit by its enormous debt load, sugar prices at 20-year lows and soaring energy prices.

Needless to say, Imperial management did not attach any blame to itself. Last month Imperial failed to make a $12.3 million (€13.1 million) interest payment and its 30-day grace period ended this week, meaning that Imperial was officially in default on its debt.

Imperial, its bank lenders and a committee representing a majority of its bank lenders have agreed to issue $250 million worth of equity in exchange debt. This means that the banks will own the vast bulk of Imperial equity, with existing shareholders, including Greencore, owning just 2 per cent.

There are various other parts to the restructuring of a company that lost $34.7 million last year and is currently valued at just $26 million at its suspension price of $0.81. The best thing that can be said about Greencore's involvement with Imperial is that the Irish group cut its losses when it did and wrote off its investment.

Now Greencore is a much different company, with the attraction of sugar in the US being substituted by sandwiches, quiches and pizzas in the UK through its Hazlewood acquisition. Greencore is in the process of mopping up the remaining few per cent of Hazlewood equity. When that happens, most observers believe that Mr Dilger will begin wielding the axe with great force and sell off assets as part of the strategy of realising £120 million (€152.5 million) in savings in the first year.

The success of the acquisition will be judged on Greencore's ability to do that cost-cutting.