Reddy Ice Holdings Inc., a maker and distributor of about 1.8 million tons of ice a year, filed for bankruptcy protection from creditors.
The company and a subsidiary, Reddy Ice Corp., listed consolidated assets of $434 million and debt of $530.8 million as of Dec. 31 in Chapter 11 documents filed today in U.S. Bankruptcy Court in Dallas, where it is based. Reddy Ice Corp. also sought protection.
Reddy Ice’s 2011 annual report was delayed because management needed more time to “finalize and analyze” its financial statements, the company said in a March 30 filing with the Securities and Exchange Commission. Reddy Ice also said it was in talks on restructuring and reducing debt.
Standard & Poor’s lowered Reddy Ice’s corporate credit rating two grades to CC after the SEC filing. Noteholders are likely to receive from zero to 10 percent recovery in a default, S&P said. Moody’s Investors Service on April 3 reduced Reddy Ice’s corporate family rating to Ca from Caa1.
Reddy Ice reported a net loss of $36.2 million for the first nine months of 2011 on sales of $273.6 million. The company, with origins dating to the early 1900s, sells its products in 34 states and the District of Columbia.
Arctic Glacier Inc., a producer, marketer and distributor of packaged ice to consumers in the U.S. and Canada, filed for bankruptcy protection in the U.S. on Feb. 22.
The case is In re Reddy Ice Holdings Inc., 12-32349, U.S. Bankruptcy Court, Northern District of Texas (Dallas).