The management of Reddy Ice Holdings, Inc. (together with its subsidiary Reddy Ice Corporation (“Reddy Corp”), the “Company”) has determined that the Company is unable to file its Annual Report on Form 10-K for the period ended December 31, 2011 on March 30, 2012, without unreasonable effort or expense, because management needs additional time to finalize and analyze the Company’s financial statements.
In addition, the Company is currently in active discussions with various stakeholders regarding alternatives to modify its capital structure and reduce the Company’s leverage. Although the Company is currently in compliance with the indentures governing its outstanding notes and its credit agreement, in 2011 the Company began to explore alternatives to address its capital structure in light of the Company’s financial results. In recent months these efforts have accelerated and the Company has been required to devote key personnel and administrative resources, including the personnel and resources of its accounting and financial reporting organization, to matters relating to the negotiations. The Company believes these discussions will be concluded shortly, at which time the Company’s Annual Report on Form 10-K will be filed. However, there can be no assurance that an agreement can be reached with the Company’s stakeholders or that any transaction with the Company’s stakeholders will be consummated.
In the event we are able to reach an agreement with our stakeholders a “prepackaged” bankruptcy may provide the most expeditious manner in which to affect our plan of reorganization. This process is not expected to have an adverse effect on our operations. Immediately upon filing, we would request Bankruptcy Court approval to pay critical suppliers and other vendors in the ordinary course of business, which request is commonly approved in similar situations. All of our customers would continue to be serviced without interruption.
Put a fork in it its done!
