Arctic Glacier Income Fund
CNSX : AG.UN

Arctic Glacier Income Fund

August 15, 2012 17:45 ET

Arctic Glacier Issues Default Announcement Pursuant to National Policy 12-203

WINNIPEG, MANITOBA--(Marketwire - Aug. 15, 2012) - Arctic Glacier Income Fund (CNSX:AG.UN) (the "Fund") announced today that it will not be able to file an interim financial report and interim management's discussion and analysis for the period ended June 30, 2012, together with the related certification of filings under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the "Continuous Disclosure Documents") by August 29, 2012, the deadline prescribed by securities legislation (the "Specified Requirement").

As previously disclosed, on February 22, 2012, the Fund and its subsidiaries (collectively, "Arctic Glacier") commenced proceedings in the Manitoba Court of Queen's Bench (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA"). In the CCAA proceedings, Arctic Glacier continued its business under the protection of a stay of creditor claims and Arctic Glacier conducted a court supervised recapitalization of its business through the initiation of a sale and investment solicitation process. The CCAA proceedings were recognized in the United States Bankruptcy Court for the District of Delaware (the "US Court"). Under the CCAA, Alvarez & Marsal Canada Inc. was appointed by the Court as Monitor. Since the CCAA proceedings commenced, in compliance with the CCAA and the orders of the Court in the CCAA proceedings, Arctic Glacier has provided the Monitor with full access to its accounting records. The Monitor has filed with the Court periodic reports which have included Arctic Glacier's cash flow projections and other financial information concerning Arctic Glacier. Arctic Glacier anticipates that the Monitor will continue to file reports with the Court (and post them on its website) updating relevant financial information concerning Arctic Glacier. The Monitor's reports and Court records are available on line on its website at www.alvarezandmarsal.com/arcticglacier.

As previously disclosed, with the approval of the Court and the US Court, on July 27, 2012, Arctic Glacier sold substantially all of its business and assets (the "Sale") to affiliates of H.I.G. Capital (the "Purchaser") for cash consideration and the assumption of certain current liabilities. On closing the Sale, the Purchaser hired substantially all of Arctic Glacier's employees and is continuing the business formerly carried on by Arctic Glacier. The remaining cash proceeds of the Sale are being held by the Monitor pending further order of the Court, the satisfaction of tax liabilities, if any, the determination and payment of creditor claims, including outstanding litigation claims, and such other matters considered relevant by the Trustees of the Fund.

As a consequence of the Sale, Arctic Glacier has not had the requisite time or resources to prepare and file the Continuous Disclosure Documents reflecting its financial position as of June 30, 2012. Arctic Glacier intends to file the Continuous Disclosure Documents as soon as is commercially reasonable, or as required by the Court.

Arctic Glacier intends to satisfy the provisions of the alternative information guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults so long as it remains in default of the Specified Requirement. It also intends to file with the applicable securities regulatory authorities throughout the period in which it is in default of the Specified Requirement, the same information it or its subsidiaries provide to their creditors when the information is provided to their creditors and in the same manner as it would file a material change report under part 7 of National Instrument 51-102 Continuous Disclosure Requirements.

Forward-Looking Statements

Certain statements included herein constitute "forward-looking statements". All statements, other than statements of historical fact, included in this release that address future activities, events, developments or financial performance are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "will", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe", "future" or "continue" or the negative thereof or similar variations. In particular, statements about Arctic Glacier's intentions to satisfy the provisions of the alternative information guidelines and file information with the applicable securities regulatory authorities, as well as the expected timetable for satisfying the Specified Requirement, are or involve forward-looking information. These forward-looking statements are based on certain assumptions and analyses made by Arctic Glacier and its management, in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. Investors are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties, assumptions and other factors, many of which are outside the control of Arctic Glacier, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among other things, the CCAA Process and Arctic Glacier's ability to secure sufficient resources to prepare the Continuous Disclosure Documents. Readers are cautioned that the foregoing list is not exhaustive. Such forward-looking statements should, therefore, be construed in light of such factors. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. All forward-looking statements attributable to Arctic Glacier, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Readers are cautioned not to place undue reliance on forward-looking statements contained herein, which reflect the analysis of the management of Arctic Glacier, as appropriate, only as of the date of this release. For more information regarding these and other risks, readers should consult Arctic Glacier's reports on file with applicable securities regulatory authorities accessible online by going to SEDAR at www.sedar.com or by going to the Arctic Glacier website at www.arcticglacier.com. Arctic Glacier is under no obligation, and Arctic Glacier expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Arctic Glacier

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.

Contact Information

  • Arctic Glacier Income Fund
    Hugh A. Adams
    Corporate Secretary
    Toll free investor relations phone: 888-573-9237
    www.arcticglacier.com