Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reddy Ice To Seek Bankruptcy Protection For Restructuring - Update

Packaged ice maker Reddy Ice Holdings Inc. (RDDY.PK) Thursday said it intends to file a voluntary Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code in the US Bankruptcy Court for the Northern District of Texas. The company also said it will seek to complete the restructuring process quickly and will request the court approval to emerge from bankruptcy in 45 days or less.

The company noted that its balance sheet restructuring will ensure strong financial footing for the future and allow operations to continue uninterrupted. The plan has the support of a majority of its lenders and major creditors, it added.

Gilbert Cassagne, chief executive officer of the company said, "We expect to emerge from this restructuring as a much stronger company that is well positioned for investment in growth and enhanced profitability."

According to the company, the restructuring plan is intended to recapitalize its business and also for a strategic acquisition of Arctic Glacier Income Fund and its subsidiaries.

It was on March 28 that Reddy Ice submitted a non-binding letter of intent to acquire Arctic Glacier's operations and assets. However, Reddy Ice noted that there can be no assurance that it will be able to consummate the acquisition.

Reddy Ice has secured commitments from Macquarie Bank Ltd., for $70 million in debtor-in-possession financing to fund its working capital needs while in Chapter 11. It has also secured commitments for $50 million in exit financing, which will be available upon emergence from Chapter 11.

Separately, the company reported a wider fourth-quarter loss, citing weaker economic environment, higher commodity costs and heavy debt levels. In the fourth quarter ended December 31, the company's net loss was $33.3 million or $1.46 per share, wider than $29.01 million or $1.26 per share in the previous year. Revenues declined to $54.89 million from $55.25 million in the same quarter last year.

RDDY.PK closed Wednesday's regular trading at $0.07.

Register
To receive FREE breaking news email alerts for Reddy Ice Holdings, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.