WINNIPEG, MANITOBA, Jun 28 (MARKET WIRE) --
Arctic Glacier Income Fund (CNSX:AG.UN) ("Arctic Glacier") today provided
an update on the proposed sale of substantially all of its business and
assets (the "Transaction") to an affiliate of H.I.G. Capital.
The Transaction will be carried out by way of a court approved sale under
the Companies' Creditors Arrangement Act ("CCAA"). The agreement and
completion of the Transaction remain subject to court approval in the
United States and the satisfaction of certain closing conditions
customary in transactions of this nature, including the absence of a
material adverse change in respect of Arctic Glacier. The Transaction is
expected to close by no later than July 31, 2012.
As previously disclosed, on closing, all of the employees of Arctic
Glacier will be offered employment and the company's head office will
remain in Winnipeg. The purchaser will assume Arctic Glacier's current
trade payables and all of its leases and certain contractual obligations.
Based upon a total purchase price of US$434.5 million (subject to a
customary closing working capital adjustment and other adjustments),
Arctic Glacier's existing secured lenders will be paid in full on closing
and 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 pursuant to a court-ordered claims
process. The timing and amount of any distributions to creditors and
unitholders cannot be determined at this time.
