WINNIPEG, MANITOBA--(Marketwired - Jan 28, 2015) - Arctic Glacier Income Fund (CSE:AG.UN) (the "Fund") issued a press release on December 15, 2014 which announced that unitholders of the Fund as of December 18, 2014 (the "Record Date") would be entitled to receive an initial distribution from the Fund pursuant to the Plan of Compromise or Arrangement of, inter alia, the Fund dated May 21, 2014, as amended (the "Plan"). This press release advised that the date and value of the initial distribution would be announced by way of a subsequent press release once such information was determined.
On January 21, 2015, the Fund issued a press release which announced that, on January 22, 2015 (the "Plan Implementation Date"), unitholders as of the Record Date would be entitled to receive an initial distribution of $0.155570 USD per unit of the Fund held on the Record Date. Pursuant to the Plan, Alvarez & Marsal Canada Inc., in its capacity as the Court-appointed monitor (the "Monitor") of the Fund and its subsidiaries (collectively, the "Arctic Glacier Parties"), transferred the aggregate value of this initial distribution, being $54,498,863.58 USD, to the Fund's transfer agent (the "Transfer Agent") on behalf of the Fund on the Plan Implementation Date. The Plan requires that the Transfer Agent distribute this initial distribution to the Fund's registered unitholders as of the Record Date as soon as reasonably practicable and in no event later than five business days following the receipt of the funds from the Monitor.
Pursuant to the Plan, the Monitor is holding the Administrative Costs Reserve, the Insurance Deductible Reserve and the Unresolved Claims Reserve (the "Reserves", as such are described and defined in the Plan) on behalf of the Arctic Glacier Parties. The value of these Reserves on the Plan Implementation Date was $10,000,000 USD, $850,000 USD and $16,562,220 USD, respectively, representing an aggregate value of $27,412,220 USD.
Pursuant to the Plan, to the extent that there is any balance remaining in the Reserves following payment of all Administrative Reserve Costs (as such term is defined in the Plan), the Monitor, on behalf of the Arctic Glacier Parties, will declare subsequent unitholder distribution record dates as necessary to distribute the remaining balance. The date and value of any subsequent distributions will be announced by way of a press release. In such circumstances, the Monitor, on behalf of the Arctic Glacier Parties, will provide all subsequent distributions to the Transfer Agent who will then distribute such amounts on a pro rata basis to the unitholders holding units on the applicable subsequent unitholder distribution record dates, unless the cost of making any such payments is prohibitive relative to the remaining balance.
The Plan and further information about the Fund's proceedings under the Companies' Creditors Arrangement Act can be found on the Monitor's website at http://www.alvarezandmarsal.com/arctic-glacier-income-fund-arctic-glacier-inc-and-subsidiaries.
Forward-Looking Statements
Certain statements included herein constitute "forward-looking statements". All statements, other than statements of historical fact, included in this release that address future activities, events, developments or financial performance are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "will", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe", "future" or "continue" or the negative thereof or similar variations. These forward-looking statements are based on certain assumptions and analyses made by the Fund and its management, in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. Investors are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties, assumptions and other factors, many of which are outside the control of the Fund, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among other things, the CCAA process. Readers are cautioned that the foregoing list is not exhaustive. Such forward-looking statements should, therefore, be construed in light of such factors. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. All forward-looking statements attributable to the Fund, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Readers are cautioned not to place undue reliance on forward-looking statements contained herein, which reflect the analysis of the management of the Fund, as appropriate, only as of the date of this release. For more information regarding these and other risks, readers should consult the Fund's reports on file with applicable securities regulatory authorities accessible online by going to SEDAR at www.sedar.com. The Fund is under no obligation, and the Fund expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
About the Fund
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.
