Notice of Proposed Settlement of Reddy Ice Holdings, Inc. Securities Class Action

DALLAS, April 27, 2012 /PRNewswire/ -- The following release was issued today by Kessler Topaz Meltzer & Check, LLP:

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

In re: REDDY ICE HOLDINGS, INC. (Ticker Symbol: RDDYQ) and REDDY ICE CORPORATION, Debtors.
Case Nos.: 12-32349 and 12-32350
Chapter 11
Jointly Administered

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

TO: ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED THE PUBLICLY-TRADED SECURITIES OF REDDY ICE HOLDINGS, INC. BETWEEN AUGUST 10, 2005 AND SEPTEMBER 15, 2008, INCLUSIVE, AND WERE DAMAGED THEREBY (THE "CLASS").[1] 

On April 12, 2012, Reddy Ice Holdings, Inc. and Reddy Ice Corporation (together, "Reddy Ice") filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Northern District of Texas (the "Bankruptcy Court").

YOU ARE HEREBY NOTIFIED, pursuant to Rules 7023 and 9019 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules"), that a settlement of the action captioned John Chamberlain, individually and on behalf of all others similarly situated, v. Reddy Ice Holdings, Inc., et al., Civil Action No. 2:08-cv-13451 (E.D. Mich.) (the "Securities Action") for One Million Dollars ($1,000,000) (the "Settlement Amount") has been proposed in connection with Reddy Ice's bankruptcy filing (the "Settlement"), and in the interests of justice and for the convenience of all parties, the Securities Action has been transferred to the Bankruptcy Court for purposes of approving and administrating the Settlement in conjunction with other matters affecting the Reddy Ice bankruptcy estate.

A hearing will be held before the Honorable Stacey G. C. Jernigan in the Bankruptcy Court, Earle Cabell Building, U.S. Courthouse, 1100 Commerce Street, Dallas, Texas 75242-1496 at 9:30 a.m. (prevailing Central Time) on May 18, 2012 to determine, among other items related to Reddy's Ice's bankruptcy proceeding: (1) whether the proposed Settlement, as set forth in the Stipulation and Agreement of Settlement ("Settlement Agreement"), is fair and reasonable and should be approved pursuant to Bankruptcy Rule 9019; (2) whether the Class described above should be certified for purposes of settlement pursuant to Bankruptcy Rule 7023; (3) whether the proposed plan for allocating the settlement proceeds, as set forth on the website, http://classaction.kccllc.net/ReddyIce should be approved; and (4) whether Lead Counsel's application for an award of attorneys' fees not to exceed 15% of the Settlement Amount and reimbursement of expenses not to exceed $300,000 should be approved.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT AMOUNT.  If you are a member of the Class, in order to be eligible to receive a payment from the proposed Settlement, you must submit a Proof of Claim form, along with the supporting documentation requested in the Proof of Claim form, postmarked no later than July 18, 2012 to Reddy Ice Holdings Class Action, c/o Kurtzman Carson Consultants LLC, P.O. Box 6177, Novato, CA 94948-6177.  You can obtain a copy of the Proof of Claim form by visiting the website http://classaction.kccllc.net/ReddyIce, or you can call (866) 731-4775 and request that a Proof of Claim form be mailed to you.  If you are a member of the Class and do not submit a proper Proof of Claim form, you will not share in the distribution of the net proceeds of the Settlement, but you will nevertheless be bound by any order pertaining to the Settlement that is entered by the Bankruptcy Court.  Depending on the number of claims filed and when Class Members purchased, acquired and sold their Reddy Ice securities, the estimated average recovery per damaged share of Reddy Ice common stock will be approximately $.032 (before the deduction of attorneys' fees and expenses set forth above and before payments that would be made to those with transactions in options).[2] Additionally, if the amount of attorneys' fees and expenses set forth above are requested and approved by the Court, the average cost per damaged share of Reddy Ice common stock will be approximately $.014.  Please note that these amounts are only estimates.

If you are a member of the Class, you also have the right to exclude yourself from the Class or to submit an objection to the proposed Settlement, Plan of Allocation and/or application for attorneys' fees and reimbursement of expenses.  To exclude yourself from the Class, you must submit a letter stating that you "request exclusion from the Class in the In re Reddy Ice Holdings, Inc. Bankruptcy Case, Case Nos. 12-32349 and 12-32350" and your request must be received by Lead Counsel (at the address set forth below) on or before May 11, 2012.  In light of Reddy Ice's bankruptcy, if you choose to exclude yourself from the Class, you will have limited rights, if any, to proceed against the Defendants for the claims asserted in the Securities Action.  If you are a member of the Class and do not exclude yourself from the Class, you will be bound by any order pertaining to the Settlement that is entered by the Bankruptcy Court.  Any objections to the proposed Settlement, Plan of Allocation, and/or application for attorneys' fees and reimbursement of expenses must be filed with the Clerk of the Bankruptcy Court, at Earle Cabell Building, U.S. Courthouse, 1100 Commerce Street, Room 1254, Dallas, Texas 75242-1496, and submitted to Lead Counsel (at the address set forth below) on or before May 11, 2012.

Please Note:  More information regarding the Settlement and Reddy Ice's bankruptcy proceeding can be obtained by visiting the website http://classaction.kccllc.net/ReddyIce.  The procedural history of the Securities Action and the terms of the Settlement are contained in the Settlement Agreement which is posted on the website.  Also posted on the website is the plan for allocating the settlement proceeds among those members of the Class who submit proper Proofs of Claim.

PLEASE DO NOT CONTACT THE BANKRUPTCY COURT REGARDING THIS NOTICE.  Inquiries, other than requests for copies of the Proof of Claim form, may be made to Lead Counsel:  Michael K. Yarnoff, Esq, and Kimberly A. Justice, Esq., Kessler Topaz Meltzer & Check, LLP, 280 King of Prussia Road, Radnor, PA 19087, (610) 667-7706.

[1] Excluded from the Class are the Defendants (i.e., Reddy Ice, William P. Brick, Steven J. Janusek and Jimmy C. Weaver), current and former officers and directors of Reddy Ice, members of the immediate family of each of the individual defendants and their legal representatives, heirs, successors, or assigns and any entity in which Defendants have or had a controlling interest.  Also excluded from the Class are any person or entity who excludes themselves by requesting exclusion from the Class in accordance with the requirements set forth herein. 

[2] The combined recovery for the Put/Call Options shall not exceed 3% of the Net Settlement Fund.  See the Plan of Allocation available for review at http://classaction.kccllc.net/ReddyIce.

SOURCE Kessler Topaz Meltzer & Check, LLP