Arctic Glacier Pursues Recapitalization Via CCAA Filing

Arctic Glacier Income Fund (CNSX:AG.UN) today announced that its Trustees have
authorized the Fund, together with its subsidiaries ("Arctic Glacier"), to
initiate proceedings in the Manitoba Court of Queens Bench seeking a court
supervised recapitalization under the Companies' Creditors Arrangement Act
("CCAA"). 


In the CCAA application, Arctic Glacier seeks approval for a court supervised
recapitalization process and for the immediate initiation of a sale and
investment solicitation process ("solicitation process"). The CCAA application
also seeks a stay of certain creditor claims and approval of
debtor-in-possession financing that would enable Arctic Glacier to maintain
normal business operations as the solicitation process is implemented. Court
proceedings are to take place today in Winnipeg. 


"We believe that a court supervised recapitalization of Arctic Glacier's
business is the best method available to secure its future," said Keith McMahon,
President and CEO of Arctic Glacier. "The CCAA process would allow the time and
stability required to implement the solicitation process, while continuing our
normal day-to-day operations. We expect that it would result in a sale or
recapitalization of the business, which will maximize value for the benefit of
all of our stakeholders." 


The solicitation process has the support both of Arctic Glacier's secured
lenders and two of its unitholders, Coliseum Capital Management, LLC and Talamod
Asset Management, LLC (together, the "Concerned Unitholders"). Both the lenders
and the Concerned Unitholders believe the implementation of the solicitation
process is in the best interest of all stakeholders of Arctic Glacier. 


"Over the last several months, the company has received proposals from a number
of parties that indicated value for all company stakeholders, including
unitholders," said Gary Filmon, Chairman of the special committee of the board
of trustees. "We believe a court supervised solicitation process would maximize
value by allowing all interested parties to fully evaluate the opportunity
presented by Arctic Glacier while setting a reliable timetable for the ultimate
sale or recapitalization."


Arctic Glacier's secured lenders have also agreed, subject to court approval, to
provide up to $50 million in a debtor-in-possession financing facility to fund
Arctic Glacier's operations during the CCAA process. 


An application will also be made seeking recognition of the CCAA proceedings in
the U.S. pursuant to Chapter 15 of the U.S. Bankruptcy Code. 


During the CCAA process, Arctic Glacier expects to maintain all operations at
their normal capacity in both Canada and the United States. No layoffs or lease
terminations are planned and all suppliers of goods and services are intended to
be paid as usual, including amounts owed prior to the CCAA filing. 


About Arctic Glacier 

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc.,
is a leading producer, marketer and distributor of high-quality packaged ice in
North America, primarily under the brand name of Arctic Glacier(R) Premium Ice.
Arctic Glacier operates 39 production plants and 47 distribution facilities
across Canada and the northeast, central and western United States servicing
more than 75,000 retail locations. 


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.


Forward-Looking Information 

Certain matters set forth in this news release, including statements with
respect to the CCAA proceedings, the solicitation process, the sale or
recapitalization of Arctic Glacier, the operations of Arctic Glacier, and the
ability of Arctic Glacier to meet its obligations are forward looking. These
forward-looking statements reflect management's current views and are based on
certain assumptions including assumptions as to future operating conditions and
courses of action, sale or recapitalization alternatives, economic conditions
and other factors management believes are appropriate. Such forward looking
statements are subject to risks and uncertainties that may cause actual results
to differ materially from those contained in these statements, including the
risk that sale or recapitalization alternatives may not be available to Arctic
Glacier or may not be available on terms favourable to Arctic Glacier and its
security holders or that any such sale would yield proceeds sufficient for any
distribution to Arctic Glacier's unitholders, as well as those risks and
uncertainties identified under the heading "Risks Management" in Arctic
Glacier's management's discussion and analysis for each of the year ended
December 31, 2010, and for the third quarter ended September 30, 2012 available
at www.sedar.com. These forward-looking statements are made as at the date of
this news release, and the Fund assumes no obligation to update or revise them,
either publicly or otherwise, to reflect new events, information or
circumstances.