Arctic Glacier Income Fund

Arctic Glacier Income Fund

September 16, 2008 17:00 ET

Arctic Glacier Suspends Distributions

WINNIPEG, MANITOBA--(Marketwire - Sept. 16, 2008) - Arctic Glacier Income Fund (TSX:AG.UN), today announced an indefinite suspension of its monthly cash distributions to unitholders. The change will be effective for the September 2008 distribution that would be payable October 15, 2008.

"The markets are clearly not recognizing the value of Arctic Glacier's distributions to unitholders," said Keith McMahon, President and CEO of the Fund's operating subsidiary, Arctic Glacier Inc.

"In view of this significant change in unit value, we believe the Fund would be more prudent to deploy its cash resources to reduce debt and strengthen the balance sheet."

In conjunction with the previously announced reduction to the distribution level on August 12, 2008, the suspension of the distribution will conserve cash in the amount of approximately $3.6 million per month.

"We are fully aware of the significance of distributions to unitholders," said Mr. McMahon. "However, we feel this measure is necessary to improve balance sheet strength and better position the Fund for the long term. Trustees will move to reinstate distributions when it is deemed appropriate to do so."

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 under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 38 production plants and 51 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail accounts.

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.

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