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The Highliner

Commercial fishing is a bedrock industry in Alaska, and has been for more than a century. Every year scores of fishermen net millions of migrating salmon, challenge the icy Bering Sea to trap king crabs, lay miles and miles of baited hooks for halibut, and scoop up enough pollock for a zillion fish sticks. And when fishermen aren't out fishing, they're usually talking about fishing. That's what this blog is all about. Cast your net here for commercial fishing news and notes. And if you've got a bone to pick, post a comment.

About me:
I've pounded the commercial fishing beat for the Anchorage Daily News since 1999. I hail originally from Tennessee. I've never fished commercially, but I've spent much time as a journalist aboard boats and inside fish-processing plants. Of course, I'm a big consumer of Alaska seafood. One of my favorites: canned sockeye.

Contact Wesley Loy at wloy@adn.com.

Icicle sale closes, Glitnir role confirmed

Posted by The Highliner

Posted: September 26, 2007 - 10:37 am

Looks like the ol’ Highliner got it right with his report that the Icelandic bank Glitnir played a big role in the now closed sale of Icicle Seafoods Inc. to San Francisco private equity firm Fox Paine (The Highliner, Aug. 9).

Here’s are a couple of press releases out today:

REYKJAVIK, ICELAND -- (MARKET WIRE) -- 09/26/07 -- 26 September 2007 - Reykjavik/Seattle/New York/London - Icicle Seafoods, Inc. (Icicle) announced today the completion of an agreement to sell a majority of the company's shares to FP Icicle Holdings Inc., a company formed by investment funds managed by U.S. private equity firm Fox Paine Fund III, LP (Fox Paine). The transaction closed 25 September 2007.

Based in Seattle, WA with annual revenues of over USD300 million, Icicle is one of the largest seafood companies in the U.S., serving markets in North America, Japan and Europe. The company has extensive presence in Alaska, as well as operations in Washington, Oregon and Southern Chile. Icicle harvests and processes wild Alaska salmon, pollock, crab, halibut, cod, sablefish and herring, and is entering the farmed salmon segment. Icicle's management team is led by industry veterans Don Giles (CEO) and Dennis Guhlke (CFO).

Glitnir Capital Corporation acted as exclusive financial advisor to Icicle and Glitnir banki hf acted as mandated lead arranger and sole bookrunner for Fox Paine's acquisition financing. Glitnir is considered the leading financial group serving the global seafood industry.

"This transaction provides Icicle with a great platform for future growth, as the seafood industry continues to consolidate. Glitnir is delighted to support the company and Fox Paine in this important new partnership", said Jonathan Logan, Managing Director, Head of Glitnir Capital Corporation. "We consider the resource base and growth in seafood consumption as strong indicators for future investment."

"Icicle presents a robust entry point to the seafood industry for Fox Paine, with a deeply experienced management team", said Ignacio Kleiman, Managing Director in Glitnir Capital Corporation. "The respective Glitnir entities were uniquely positioned to advise and provide fully underwritten credit facilities for this substantial transaction. Our global coverage and knowledge of seafood enables Glitnir as a group to deliver full service solutions for seafood clients and investors interested in the sector."

Current management led by Don Giles will remain in place to oversee the company's future growth under the ownership of Fox Paine. Commenting on the transaction, Mr. Giles said: "We appreciated Glitnir's financial expertise and counsel, which helped in making this transaction a reality. Now that it has closed, we look forward to working with our partners at Fox Paine Fund III to create new opportunities for our Company."

W. Dexter Paine, III, President of Fox Paine III, said: "Glitnir is well known for its strong foothold in the seafood industry and they were an important aspect of this transaction. Their industry expertise and know-how made them the natural party to lead the financing and allowed us to complete the transaction quickly and efficiently."

About Glitnir Bank

The financial group Glitnir offers retail, corporate and investment banking services. Glitnir is a leading niche player in three global industry segments: seafood/food, sustainable energy, and offshore service vessels. Glitnir operates in Iceland, Norway, Sweden, Denmark, Finland, the U.K., Luxembourg, Russia, Canada and China, and established a U.S. subsidiary, Glitnir Capital Corporation, in New York in 2007 to strengthen its presence in the Americas. Glitnir is listed on the Icelandic Stock Exchange (GLB).

Fox Paine III Completes Acquisition of Icicle Seafoods

NEW YORK, SAN FRANCISCO and SEATTLE, Sept. 26 /PRNewswire/ -- Fox Paine Management III, LLC (Fox Paine III), the San Francisco and New York-based private equity firm, today announced that FP Icicle Holdings, Inc., a company formed by investment funds managed by Fox Paine III, has completed its acquisition of Icicle Seafoods, Inc. (Icicle Seafoods), a diversified seafood harvesting and processing company with processing facilities operating throughout Alaska in most major fisheries.

Don Giles, Icicle Seafoods' President and Chief Executive Officer, said, "The completion of this transaction is an important step forward in our strategic growth plan. With a strong and supportive partner in Fox Paine III, we are well-positioned to create new opportunities for Icicle Seafoods, advance the Company's position as a leader in the Alaska and Pacific Northwest seafood industry and grow our business in new and existing markets through synergistic acquisitions. I look forward to continuing to lead Icicle Seafoods as we begin this new and exciting chapter in our Company's history."

W. Dexter Paine, III, President of Fox Paine III, added, "We look forward to working closely with Don and the entire Icicle Seafoods team to move forward and help them grow and achieve their long-term goals. Icicle's leading market position, talented employee base and rich heritage of service and quality, together with Don's first-rate leadership, position this dynamic company for continued growth and development."

As previously announced, Mr. Giles will continue to lead the Company as Icicle Seafoods' President and Chief Executive Officer, and, together with the rest of Icicle Seafoods' leadership team, will continue to run the business.

About Icicle Seafoods, Inc.

Icicle Seafoods is one of the largest and most diversified seafood companies in Alaska. Icicle Seafoods' core business is the primary processing of seafood including salmon, pollock, crab, halibut, cod, sablefish and herring in all major fisheries throughout Alaska, with both on-shore and floating processing facilities. Other operations include the production of surimi-based seafood products in Bellingham, Washington, as well as the importing and trading of other seafood products. Icicle Seafoods' products are sold throughout the world to a variety of customers including industrial, wholesale, food service and retail markets. Providing these markets with the highest quality seafood has been a founding principle of Icicle Seafoods.

About Fox Paine Management III, LLC

Fox Paine III provides equity capital for management buyouts, going private transactions, and company expansion and growth programs. Fox Paine III engages exclusively in friendly transactions developed in cooperation with a company's management, board of directors, and shareholders. For further information see http://www.foxpaine.com.

SOURCE: Fox Paine Management III LLC

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6 September 29, 2007 - 10:17pm | adnak

Frank owns Icicle now?

Us fishermen are totally screwed.

5 September 29, 2007 - 2:07pm | mossback

Thank you Don Giles for

Thank you Don Giles for taking Icicle to the next level. Every fisherman should know that you can't keep fishing the same hole forever. It's time the fishermen quit blaming everyone else for their shortcomings and start thinking outside the box.

September 30, 2007 - 8:13am | jtgranger

Is that a personal moral shortcoming mossback?

And are they really inside or outside the box?

Page 15, in Holmes "Common Law"

"...The Roman law delt mainly with living creatures,-with animals and slaves. If a man was run over, it did not surrender the wagon which crushed him, but the ox which drew the wagon. At this stage the notion is easy to understand. The desire for vengence may be felt as strongly against a slave as against a freeman, and it is not without example nowadays that a like passion should not be felt against an animal. The surrender of the slave or beast empowered the injured party to do his will upon them. Payment by the owner was merely a privilege in case he wanted to buy the vengance off.
It will readely be imagined that such a system as had been described could not last when civilization had advanced to any considerable height. What had been the privilege of buying off the vengence by agreement, of paying the damage instead of surrendering the body of the offender, no doubt became a general custom. The Aqulian law, passed about a couple centuries later than the date of the Twelve Tables, enlarged the sphere of compensation for bodily injuries. Interpertation enlarged the Aqulian law. Masters became personally liable for certin wrongs committed by their slaves with their knowledge, where previously they were only bound to surrender the slave. If a pack-mule threw off his burden upon a passer-by because he had been improperly overloaded, or a dog which might have been restrained escaped from his master and bit anyone, the old noxial action, as it was called gave way to an action under the new law to enforce a general personal liability.
Still later, ship owners and innkeepers were made laible as if they were wrongdoers for wrongs committed by those in their employ on board ship or in the tavern, although of course committed without their knowledge. The true reason for this exceptional responsibility was the exceptional confidence which was necessarily reposed in carriers and inkeepers. But some jurists, who regarded the surrender of children and slaves as a privilege intended to limit liability, explained that this new liability on the ground that the inkeeper or ship owner was to a certain degree guilty of negligance in having employed the services of bad men. This was the first insance of a master being made unconditionally liable for the wrongs of his servant. The reason given for it was of general application, and the principal expanded to the scope of the reason
The law as to ship owners and inkeepers introduced another more startling innovation. It made them responsible when those whom they employed were free, as well as when they were slaves. For the first time one man was made answerable for the wrongs of another who was also answerable himself, and who had standing before the law. This was a great change from the bare permission to ransom one's slaves as a privilege. But here we have the history of the whole modern doctrine of master and servant, and principal and agent. All servants are now as free and as liable to suit as their masters. Yet the principal introduced on special grounds in a special case, where servants were slaves, is now the general law in this country and England, and under it men daily have to pay large sums for other peoples acts, in which they had no part and for which thay are in no sense to blame. And to this day the reasons offered by the Roman jurists for an exceptional rule is made to justify this universal and unlimited responsibility..."

Still working on that 7th Amendment Doctrine at Icicle, with Exxon and that drunk driving case, with the great "secret backroom deals" discussed by Judge Holland.

I guess mossback, I do quit blaming everyone else, except for those involved in this clearly erronious "astonishing ruse" as discssed by Judge Holland in that Anchorage District Court.

Or are Seven Seattle Seafood Processors, part of the "personal moral shortcoming's" issues discussed clearly by Justice Holmes, a Favorite of the Justice Scalia and his associates, on the highest bench.

No it's not blaming everyone else mossback, it's blaming those responsible, for the natural acts of their employee's actions.

That includes bobby's friends, on the slime line, or in the big fancy office, in that big fancy chair.

Page 6.

"A man has an animal orf known ferocious habits, which escapes and does his neighbor damage. He can pprove that the animal escaped through no negligance of his, but still he is held liable. Why? It is says the analytical jurist, because,although he was not negligent at the moment of escape, he was guilty of remote heedlessness, or negligance, or fault, in having such a creature at all. And one by whos fault damage is done ought to pay for it.
A bakers man, while driving his masters cart to deliver hot rools in the mourning, run another man down. The master has to pay for it. And when he has asked why he should have to pay for the wrongful act of an independant and responsible being, he has been answered from the time of Ulpian to Austin, that it is because he was to blame for employing an improper person. If he answers, that he used the greatest possible care in choosing his driver, he is told that is no excuse.; and then perhaps the reason is shifted, and it is said that there ought to be a remedy against some one who can pay the damages, or that such wrongful acts as by ordinary human laws, are likely to happen in the course of the service are imputable to the service..."

And if this still confuses the buyers of our Seattle Seven Seafood Processor's, with no blame whatsoever on a fisherman, unless of course their part owners, and do not control the helm whatsoever, it truly dosent matter where the blame lies.

70 Federal; Agents Flying North to Alaska can't be wrong on the criminal side can they mossback?

Page 183.

"...The neglect which occasioned the damage might be a mere ommission, and what there was there akin to trespass in a nonfeaseance to sustain the anology upon which trespasses on the case was founded? Morever, to charge a man for not acting, you must show it was his duty to act..."

It time time to quit fishing for tuition mossback, possession of standing truly isnt confusing, and one can only blame themselves, for these errors from the Article III member from Fairbanks.

You cant keep fishing the same hole mossback? You are mistaken. or is that Number 7 on the Bill of Rights, still confusing?

And a Gillnetter's going to have to teach you how to go seining???

Page, 217 "Possession"

The Court of the Queens Bench even went so far as to decide, notwithstanding a verdict the other way, that when fish were nearly surrounded by a seine, with an opening of seven fathoms between the ends, at which point boats were stationed to frighten them from escaping, they were not reduced to possession as against a stranger who rowed through the opening and helped himself..."

You own any of that standing, mossback?

September 29, 2007 - 11:24pm | akwapsc

here here

Don, Dennis, Mark, Larry, John, Ralph, the entire management team.

But the unsung heroes here are the McKays, the Swansons, the Conn family and so many others who kept the plants going year after year since 1965.

Bill Haley at the shop. Nathan Midkif. Charlie the iceman.

the list goes on and on.

All these bloghead loser blowhards can talk and talk but I'll bet there's not one successful processor or businessman in this loop who's bashing Icicle.

If you were there for the ride--42 years-- and I was witness to it although I never got a front seat or touched the steering wheel, this was about great teamwork.

I would like to say I helped but I never worked even a single hour for Icicle. Caught them alot of humpies though. Yes and the fishermen do count. When we're fishermen stockholders then we get to share in any mistakes or fines the company received. But then again we get to share in the sale. And yes. Steve. There was just barely enough left over to pay those nasty fines. Just may get to buy the kids xmas presents this year after all.

Talk on boys. Start your own company, run it from now until 2049, share it with the fishermen and the employees, grow it until it becomes the largest on the west coast and then shrink it down to #3 or #4 and then pop off.

Oh. There's one more unsung, but acknowledged hero as well in this case.

My Dad, Bob Thorstenson, Sr. and his late partners Magnus Martens-my grandfather- and Tom Thompson- my uncle- and Gordon Jensen.

What shady dealings you might find on him, Mr. Taufen. He's a friend of Don Young's and Ted Stevens. That alone should make him an enemy of your trashy character.

bobbyt

September 30, 2007 - 8:21am | jtgranger

Bloghed Looser Blowhards?

"And the right of the individual shall not be infringed."

No teamwork is required boobyt?

Share those nasty fines, that really havent been seen yet.

Or was George Washington a liar on April 30, 1789?

Like Captain William Bligh on April 28, 1789?

Where did you go to school at?

4 September 27, 2007 - 6:29pm | BravoSierra

Calling out Robert Thorstenson Junior

A simple question for you.

A simple question. Can you tell your fellow fishermen the truth (for once in your life)??

Just who exactly is the person behind the scenes who orchestrated the purchase of Icicle?

Do you have the guts to tell all your fellow fishermen who you gave control of Icicle to?

And then tell us *if you can* fisherman to fisherman, (or more accurately, processor to fisherman) what that persons reputation is regarding his dealings with other fishermen and small fishing businesses from Northern California to Westport.

September 28, 2007 - 11:01am | staufen

Coward...won't answer you back.

The clown won't answer you back on that one, as he hides behind the white dusted face out of fear. And he believes an orchestrated is the three-piece playing the music on his favorite Disney film.

3 September 27, 2007 - 6:01pm | adnak

Tick, tock, tick, tock, tick........

Patience, patience, we all will be rewarded.
I'm gonna miss your emails Bobby T.

2 September 27, 2007 - 6:56am | staufen

Not one word about fishermen!

Not one word thanking the State of Alaska, the USA, for its resources... and especially not one word about enhancing the regional economy through greater returns to the citizen-taxpayers and harvesters. The MBA-headed transnationalists will simply lock in low ex-vessel fish prices, and lower them ever more.

The Trojan Horse already inside our 200-mile walls has unleashed its latest cadre, a second wave of tax and trade specialists and certified public accomplices. The docks will increasingly run red with the lifeblood of the people as the transnational corporatism model progresses unabated.

Just as we got rid of Veco's shiny-pants lobbyists, along comes the next set of resource-shoplifting sharks...

September 27, 2007 - 10:51am | akwapsc

never got the $2 billion a year.

geez.

a company owned by fishermen and employees, a majority of whom are Alaskans.

and they forgot to thank themselves.

oh. and steve-o. after 42 years and $84 billion in lost Abusive Transfer Pricing, you'd think that we'd all be flying out to the Caymans to get that lock box with Icicle's share of the $84 billion.

now that's our next act. to join groundswell and look for OUR $84 billion that you are so proud to share with us.

certainly we Alaskans and we fishermen should have privvy to that $84 billion, not you carpetbagging retread, unemployed processors.

bobbyt

September 28, 2007 - 8:06am | staufen

And a Geico, "What?"

Enjoy your offbase anger ... from your Edmonds area home, or aboard the Pamela Rae at dock 8 in Seattle.

You more than anyone can't join the Groundswell. It takes integrity, a good heart, a public serving mindset, and response-ability, and a lot more you will obviously never have.

PS: Do you have your family's Alaska PFD checks mailed to your home in Seattle? Or is the Pacific Seafood Group going to bring them by your house when Dulcich delivers the Icicle buyout checks?

Please use some of the money to go back to finish grade school... as you missed the part about We the People, and why Antitrust laws were needed.

September 28, 2007 - 9:39pm | akwapsc

ready

to come help find the $2 billion a year and you still won't have me.

that's why i quit as pres of ufa after 7 years....

to find the real Alaska Gold Rush, the missing $ 2 billion a year that Stevo and gang are gonna get us.

bobbyt

September 28, 2007 - 9:59am | peter1

The worm still turning

Yes, but you forget "the worm turns." And it will "turn again" on the injustice brought by these findings, or so he would believe...44 years is a long time to suddenly have to wake up and temper one's arrogance. It doesn't come naturally to him, don't forget. Quoting Henry VI by mistake is risky bidness.

1 September 26, 2007 - 3:24pm | adnak

Where are new cash buyers?

"This transaction provides Icicle with a great platform for future growth, as the seafood industry continues to consolidate. "

Us fishing folk are so screwed.

September 26, 2007 - 3:46pm | akwapsc

yeah, you freakshow

as if you liked icicle with the 65% employee shares and the fishermen involved in the company before.

management will be the same, just different folks shouldering the risk and reward that the Petersburg people took for 42 years.

didn't see ya all buying up your part of the state so that it could be owned by locals, fishermen and the workers at the plants.

get a life...

bobby thorstenson

September 27, 2007 - 7:02am | staufen

Life.

Def: an appropriate sentence for a SE seine clown.

Fishermen will shoulder the risk - like a load of dirt bricks.
Fox Paine will throw the reward sack over its shoulder, like a shoplifting resource robber baron.

Bobby T - before you got your sellout check, did you have to set aside >$140,000 for your share of the Adak criminal fine?

September 26, 2007 - 7:34pm | jtgranger

Freakshow? That's interesting boobyt.

I notice that freakshow, at the U.S. District Court in Anchorage is working out very well boobyt.

When is your turn coming for more of the freaks testifing against themselves?

Isn't it great boobyt, all that Justice, that has been missing for decades.

I'm sure Wesly is amazed at how slimey your CBC members really are.

Great life isn't it boobyt, with all your friends on there way to Seward.

Should have studied up on William H. Seward, boobyt, or is that "Higher Law" speech also part of your Freakshow?

Old Glitner might not be too sharp either, I'm sure he'll be amazed at Icicles liabilities in that Old Drunk Driving case, with your Seattle Seven friends.

September 26, 2007 - 8:50pm | akwapsc

get a spellchecker

you make my case for the moniker.
freak.

bobbyt

September 27, 2007 - 5:35am | jtgranger

boobyt, get a lawchecker!

When is your case, on the way to that big shiney courthouse?

"IS IT REAL YET" BOOBYT?

Criminal?

Or Civil?

September 27, 2007 - 10:46am | akwapsc

it's a suitcase not a real case

and it's got a heck of a lot of money in it you whackjobs, taufen and granger.

bobbyt

September 28, 2007 - 8:34am | staufen

Your case w.b. $140,000 lighter... soon

Time is running out for you/Icicle to pay the CRIMINAL FINE of $3.44 million. Or are you taking Pacific/FP scam funds to payoff the old admiral to administratively drop the fine? Beware wiretaps, sting ops, and plain old Alaskan wolf traps.

Pay your >$140,000 share and fess up, Bobby T - Icicle's a proven criminal organization... largest on NOAA's NOVA history channel. Some legacy for the Thorstenson Family, eh? And you, the embarassing son... (did they drop you out of the cradle too many times or what?).

September 27, 2007 - 2:33pm | jtgranger

And not a dime's worth of brains, in the whole bunch.

We'll see who's going to be whackin it, boobyt, will that be in Seward, where you'll learn how to pray for relief?

How's your favorite Man of the Year doing boobyt?
Making that title of DOJ's Man of the Year is such a great accomplishment!

She's a Grand Old Party, don't ya think boobyt?

All the money in the world won't save your sorry vision of reality, or Ted's either.

September 28, 2007 - 8:11am | staufen

...maybe Bobby T brought the boat home to Seattle because it will be in the Kent, Washington area's federal corrections facility that he sets up a permanent bunk. And maybe Dulcich ordered him back to Puget Sound to screw around some more with the Washington Department of Fisheries - to undo the comparable uncontrolled pricing that has occurred since BT last left the area.

September 28, 2007 - 3:06pm | jtgranger

Like that Icicle Egegik Plant?

I always loved that mis-trial, so they could remove the former owners testimony in that classic example of another per-say violation of that Sherman Act.

If nobody was guilty, why did all those BIG checks get written?

I always thought those 20 million dollar checks, would buy a lot of lawyers? If your NOT GUILTY?

Why is it in every state of the Union a mis-trial always contains the factual testimony from the 1st version, except in Alaska???

And that report of the 100 year pricing schedule, adjusted for inflation for Alaska Salmon?

Oh well, those "Secret Backroom Meeting's" the Seattle Seven and Exxon had togather, still confuses most of the great leaders in the Seafood Industry.

Watch out for that farmed fish though, Seven Drunken Seafood Processors, One Drunken Skipper, a Midnight Appointed Judge from Fairbanks, and a few Texan's bringing up their favorite plantation economy from Dixie, could never be wrong?

Why did that Japaneze Trade Minister, put a bullit in his head a few months ago?

Is that like that Chinese Fish Farm Inspector, who had his government but one in the back of his head, since he couldent pull it off himself?

All that personal responsibility, seems to be working out well for some of our group leaders.

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Icicle sale closes, Glitnir role confirmed