Arctic Glacier Income Fund

Arctic Glacier Income Fund

May 04, 2011 17:22 ET

Arctic Glacier Reaches Settlement With Canadian Direct Purchaser Class Actions

WINNIPEG, MANITOBA--(Marketwire - May 4, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) today announced it has reached an agreement to settle class actions filed in Canada by direct purchasers of packaged ice in Canada against Arctic Glacier Inc., the Fund's operating subsidiary, and Reddy Ice Holdings Inc., alleging related anti-competitive behaviour in the United States and Canada.

The agreement provides for Arctic Glacier to pay a settlement totalling C$2 million. The agreement is subject to approval by the Ontario Court, which will determine the timing of the approval procedure and the payment schedule. The settlement provides for the resolution of all outstanding direct purchaser actions commenced against Arctic Glacier Inc. and Reddy Ice Holdings Inc. in Ontario and in Alberta.

"The lawsuit contains allegations that are contrary to findings of the Antitrust Division of the U.S. Department of Justice, which after a lengthy investigation concluded in 2010 that no such industry-wide collusion took place in the United States," said Keith McMahon, President and CEO of Arctic Glacier. "In addition, it is important to note that these actions have not gone to trial or even proceeded to the discovery stage and therefore the company has not yet had an opportunity to produce evidence refuting the allegation of involvement in industry-wide collusion. Nonetheless, Arctic Glacier has agreed to this settlement to put the matter behind us so the company can move forward."

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 39.0 million trust units outstanding.

Forward-Looking Statements

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

    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer

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