Arctic Glacier Income Fund announces sale agreement with HIG Capital

By Jim Witters

Wilmington, Del., June 8 - Arctic Glacier Income Fund has agreed to sell substantially all of its assets to an affiliate of private equity investor HIG Capital, according to a press release.

The sale is being transacted under the sale and investor solicitation process of the Canadian Companies' Creditors Arrangement Act.

The sale remains subject to court approval in Canada and in the U.S. Bankruptcy Court for the District of Delaware.

"The purchaser has arranged committed financing for the completion of the transaction, which is expected to close by July 31," according to the press release.

"Upon completion of the transaction, Arctic Glacier will be a financially stronger company that is well positioned for growth. The purchaser intends to partner with senior management of Arctic Glacier to implement growth initiatives that will enhance profitability and increase the value of the business," the release states.

When the transaction closes, all Arctic Glacier employees will be offered jobs, and the headquarters in Winnipeg will remain open.

Creditor treatment

The agreement calls for HIG to assume Arctic Glacier's current trade payables, its leases and certain contractual obligations, the release states.

Arctic Glacier's existing secured lenders will be paid in full on closing.

Arctic Glacier expects that the net proceeds of the sale will be sufficient to pay all of its remaining known creditors and may be sufficient to permit a distribution to its unitholders after all creditor claims have been proven and satisfied.

The timing and amount of any distributions to be paid to creditors and unitholders cannot be determined at this time, the release states.

Arctic Glacier is a Winnipeg, Man.-based producer, marketer and distributor of packaged ice. Its Chapter 15 case number is 12-10603-KG.

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