Reddy Ice Says It Plans to Seek Bankruptcy Protection
By Phil Milford and Dawn McCarty - Apr 12, 2012 7:53 AM ET
Reddy Ice Holdings Inc. (RDDY), the maker and distributor of about 1.8 million tons of ice a year, said it would seek bankruptcy court protection from creditors.
The Dallas-based firm said today it reached agreements with debt holders for a Chapter 11 reorganization to give second-lien noteholders new stock, while current shareholders will receive as much as 17 cents a share.
The reorganization is supported by holders of 60 percent of the first-lien debt, 58 percent of the second-lien debt, and 92 percent of the discount notes. Noteholders will complete voting on the plan by May 8. Reddy Ice expects to emerge from reorganization within 45 days after the Chapter 11 petition is filed.
Reddy Ice filed financial statements today showing a $69.5 million net loss in 2011 on revenue of $328.5 million. The company cited assets of $434 million and debt totaling $530.8 million.
The company traces its history to the early 1900s, and sells ice in 34 states and the District of Columbia.