Packaged-ice maker Reddy Ice Holdings Inc RDDY.PK is preparing to file for Chapter 11 bankruptcy protection and plans to hand ownership to a hedge fund holding the company's debt, the Wall Street Journal reported, citing people familiar with the matter.
The company could seek bankruptcy protection this week, perhaps within the next two days or so, the paper said.
Reddy Ice officials could not be reached for comment outside regular U.S. business hours.
Hedge fund Centerbridge would exchange debt for majority ownership of Reddy Ice, the Journal said.
The company could at some later point attempt to merge with Arctic Glacier Inc, a troubled rival in Canada that has filed for bankruptcy, the paper said.
(Reporting by Santosh Nadgir; Editing by Matt Driskill)