The packaged ice manufacturer and distributor, Reddy Ice Inc., filed for Chapter 11 earlier this month in efforts to pursue debt restructuring with its creditors. Now that steps have been made towards resolving some of their near $530 million in debts, Reddy Ice faces additional challenges as they are now tied up in a court battle lead by securities holders.
Despite their $434 million in assets, Reddy Ice hasn’t been able to retain control over their finances and is in the middle of a legal battle with its securities holders. Working towards debt resolution and creditor satisfaction, Reddy Ice Inc. hasn’t paid much attention to its trouble with investors, until now. Security holders have become nervous about their investment and sought legal counsel last month.
News broke last Friday that the $1 million settlement lawsuit sought against Reddy Ice will be considered, but the outcome of that case highly depends on the state of the bankruptcy case. The court must consider the two suits together to determine if the suit is fair and reasonable, as well as meets the guidelines of bankruptcy laws. The settlement hearing is scheduled for May 18, 2012 and the presiding bankruptcy court will make a ruling as to the acceptance and administrating of the settlement.