AG Article
Arctic releases documents amid showdown
Arctic releases documents amid showdown
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Barry Critchley Sep 22, 2011 – 5:48 PM ET | Last Updated: Sep 23, 2011 9:53 AM ET
The first set of documents for the much delayed October 17 annual meeting of Arctic Glacier Income Fund have been released with the company filing a 36-page circular. The more important set of documents will be filed in the next few days when the so-called concerned shareholders release their plans. The concerned shareholders that include Coliseum Capital Partners, L.P. and Tålamod Master Fund, LP, have announced plans to change the trustees and directors of the Winnipeg-based company.
They have also announced plans to inject $300-million into the company, though the bulk of that capital will come from “a significant institutional lender,” which will put enough cash in to pay off the debt holders and provide a secured revolving facility and a secured term loan. The concerned shareholders also said that they will backstop a rights offering.
The plan is to create “a properly capitalized Arctic Glacier can again focus on pursuing long-term, strategic goals across North America from its headquarters in Winnipeg,” said the concerned shareholders, adding that the proposal “provides a full scale solution to capital structure challenges that have been severely disruptive and distressing to all stakeholders.”
For that plan to become a reality, the concerned shareholders have to convince enough unitholders to elect their five-person slate of directors: Lorie Waisberg, Gerry Miller, Mark Bromberg, Wendy King and Chris Shackelton. If that happens, it’s not immediately clear whether change of control provisions will be triggered. If they are, then three insiders each stand to make more than $2.4 million with the chief executive pocketing $3.9 million.
Naturally none of the behind the scenes struggle is detailed in the company’s circular. Instead it’s the usual circular detailing matters to be discussed at the meeting, information on compensation for the insiders, governance and share price performance: a $100 invested in the company om Dec. 31 2005 was worth $12.369 on Dec 31 2010, $100; in contrast $100 invested in the S&P/TSX composite five years back was worth $139.67 at the end of last year.
The one piece of news in the circular is that Coliseum owns 45.5 million units (12.99% of the company) while Fort Hoosac Management, also from New York, owns 43.1 million units (12.31% of the company.)
Each of the three trustees and the five directors – some of whom fill two roles – own less than 0.01% of the company.
Calls to the comment seeking a comment weren’t returned.
Posted in: FP Street Tags: Arctic Glacier Income Fund, Chris Shackelton, Coliseum Capital Partners LP, Lorie Waisberg, Mark Bromberg, Master Fund LP, North America, Science and Technology, Winnipeg