Arctic Glacier Income Fund
CNSX : AG.UN

Arctic Glacier Income Fund

February 22, 2012 18:59 ET

Arctic Glacier Granted CCAA Order

WINNIPEG, MANITOBA--(Marketwire - Feb. 22, 2012) - Arctic Glacier Income Fund (CNSX:AG.UN) today announced that its application for an order under the Companies' Creditors Arrangement Act ("CCAA") has been granted by the Manitoba Court of Queen's Bench.

The court's order authorizes the Fund and its operating subsidiaries ("Arctic Glacier") to commence a court supervised recapitalization of its business through the initiation of a sale and investment solicitation process ("solicitation process"). It also provides for a stay of certain creditor claims and authorizes debtor-in-possession financing to enable Arctic Glacier to maintain normal business operations during the CCAA process. With the approval of the court, TD Securities Inc. has been retained by Arctic Glacier as financial advisor to assist with the implementation of the solicitation process.

Arctic Glacier's current lenders have provided up to $50 million debtor-in-possession financing facility to fund Arctic Glacier's operations during the CCAA process.

"We are pleased that the court has authorized the implementation of the recapitalization process, which is a key step toward financial stability for Arctic Glacier's business," said Keith McMahon, President and CEO of Arctic Glacier.

The court also appointed Alvarez & Marsal Canada Inc. as monitor of Arctic Glacier to oversee the CCAA proceedings. The Order's duration is for an initial period of 30 days, subject to extension by the court.

The monitor will be seeking recognition of the Initial Order pursuant to Chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

During the CCAA process, Arctic Glacier expects to maintain all operations at their normal capacity in both Canada and the United States. No layoffs or lease terminations are planned and all suppliers of goods and services are intended to be paid as usual, including amounts owed prior to the CCAA filing.

Additional information regarding Arctic Glacier's CCAA proceedings will be available on the monitor's website at www.alvarezandmarsal.com/arcticglacier.

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 47 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 Canadian National Stock Exchange under the trading symbol AG.UN. There are 350.3 million trust units outstanding.

Forward-Looking Information

Certain matters set forth in this news release, including statements with respect to the CCAA proceedings, the solicitation process, the sale or recapitalization of Arctic Glacier, the operations of Arctic Glacier, and the ability of Arctic Glacier to meet its obligations are forward looking. These forward-looking statements reflect management's current views and are based on certain assumptions including assumptions as to future operating conditions and courses of action, sale or recapitalization alternatives, economic conditions and other factors management believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that sale or recapitalization alternatives may not be available to Arctic Glacier or may not be available on terms favourable to Arctic Glacier and its security holders or that any such sale would yield proceeds sufficient for any distribution to Arctic Glacier's unitholders as well as those risks and uncertainties identified under the heading "Risks Management" in Arctic Glacier's management's discussion and analysis for each of the year ended December 31, 2010, and for the third quarter ended September 30, 2011 available at www.sedar.com. 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.

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
    www.arcticglacier.com