Arctic Glacier Income Fund

Arctic Glacier Income Fund

September 30, 2011 17:08 ET

Arctic Glacier and Concerned Unitholders Announce Settlement Agreement

WINNIPEG, MANITOBA--(Marketwire - Sept. 30, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) (the "Fund"), Coliseum Capital Management, LLC and Talamod Asset Management, LLC (together, the "Concerned Unitholders") today announced that they have entered into a settlement agreement (the "Settlement Agreement") that terminates the pending proxy contest on mutually agreeable terms.

Both the Fund and the Concerned Unitholders believe this settlement is in the best interests of all stakeholders and allows the Fund to build long-term unitholder value.

The terms of the Settlement Agreement are subject to the Fund announcing a transaction (a "Transaction") by 5:00 p.m. on October 16, 2011 on terms acceptable to the Concerned Unitholders. Such Transaction would be the result of the Fund's ongoing review of financing and strategic alternatives to enhance unitholder value. Under terms of the Settlement Agreement, the Concerned Unitholders have agreed to support the re-election of the three proposed trustees of the Fund ("Fund Proposed Trustees") as named in Fund's Notice of Annual Meeting and Information Circular dated September 19, 2011, at the annual meeting of unitholders to be held on October 17, 2011. In addition, the Fund has agreed to take steps to have nominees of the Concerned Unitholders, being Chris Shackelton and Lorie Waisberg, appointed to the board of the Fund and to the board of its Canadian operating subsidiary, Arctic Glacier Inc. ("AGI").

If a Transaction is not announced by 5:00 p.m. on October 16, 2011, or the Concerned Unitholders inform the Fund by no later than 11:00 p.m. on October 16, 2011 that the terms of the Transaction are not acceptable to the Concerned Unitholders, then each of the Fund Proposed Trustees will resign and take such steps to appoint nominees of the Concerned Unitholders, being Wendy King, Chris Shackelton and Lorie Waisberg, as their replacements to the board of the Fund. In addition, all members of the AGI board of directors shall resign from the board and the Fund shall appoint nominees of the Concerned Unitholders, being Wendy King, Chris Shackelton, Lorie Waisberg, Mark Bromberg, and Gerry Miller to the board of AGI. For information on the nominees of the Concerned Unitholders, see the news release of the Concerned Unitholders issued on September 7, 2011.

"We are pleased that this situation has been resolved" said Keith McMahon, President and CEO of Arctic Glacier Inc. "We look forward to working with our unitholders to develop solutions that will build unitholder value for the long term."

As a result of the settlement agreement, the Concerned Unitholders will not be filing a dissident circular. While the Fund continues to evaluate its financing and strategic alternatives, there can be no assurance that a Transaction will be entered into or announced by October 16, 2011.

About Arctic Glacier

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America, primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are currently 350.3 million trust units outstanding.

Forward-Looking Information

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. In particular, no assurance can be given that an agreement for a Transaction will be entered into or announced by October 16, 2011 or at all or, if an agreement is reached, that such a Transaction will be successfully concluded. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    Toll free investor relations phone: 1-888-573-9237

    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
    Toll free investor relations phone: 1-888-573-9237

    On behalf of the Concerned Unitholders
    Norton Rose OR LLP
    Walied Soliman
    Counsel to the Concerned Unitholders
    Phone: 1-416-216-4820