WINNIPEG, MANITOBA--(Marketwire -02/24/12)- Arctic Glacier Income Fund (CNSX: AG.UN) today announced the United States Bankruptcy Court for the District of Delaware entered an order recognizing on an interim basis the Canadian initial order issued on February 22 under the Companies' Creditors Arrangement Act ("CCAA"), including approval of debtor-in-possession financing.
The U.S. court is scheduled to make a final order on March 16, 2012. In the interim the Company is permitted to continue with its court supervised sale and investment solicitation process in both the United States and Canada.
The Canadian court's order, as previously announced, 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. 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.
During the CCAA and Chapter 15 processes, 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 and Chapter 15 filings.
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.
Certain matters set forth in this news release, including statements with respect to the operation of Arctic Glacier during the CCAA and Chapter 15 processes 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, 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 recapitalization alternatives may not be available to Arctic Glacier or may not be available on terms favourable to Arctic Glacier and its security holders 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.