Arctic Glacier Income Fund

Arctic Glacier Income Fund

December 15, 2011 17:19 ET

Arctic Glacier Income Fund: Second Lien Lenders Acquire First Lien Position

WINNIPEG, MANITOBA--(Marketwire - Dec. 15, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) (the "Fund") announced today that its second lien secured lenders under the Fund's senior credit facilities have acquired the position of the first lien secured lenders under those credit facilities.

The Fund breached financial covenants governing maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels under its credit facilities as at June 30, 2011. The Fund's secured lenders, including both the first lien secured lenders and the second lien secured lenders, issued notices of default under the Fund's senior credit facilities in September but have not accelerated the obligations owing thereunder. The Fund is continuing active discussions with its second lien lenders regarding a solution to resolve the outstanding defaults.

The second lien lenders have advised the Fund that they purchased the first lien debt with a view to consolidating the positions of the Fund's secured lenders and thereby streamlining discussions with the Fund regarding a resolution of the outstanding defaults. However, there can be no assurance that an agreement will be reached.

The Fund continues its efforts to develop a process to resolve its outstanding defaults under its credit facilities through a sale or refinancing.

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. 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