Distressed Securities & Special Situations-1, a fund managed by FrontFour Capital Group LLC acquires 2,415,553 units of IAT Air Cargo Facilities Income Fund (TSX: ACF.UN)



    VANCOUVER, Aug. 29 /CNW/ - Pursuant to the early warning requirements of
applicable Canadian securities laws, Distressed Securities & Special
Situations-1 ("DSSS"), a Delaware statutory trust managed by FrontFour Capital
Group LLC ("FrontFour Capital"), a Delaware limited liability company,
announces that it acquired today beneficial ownership of 2,415,553 units
("Units") of IAT Air Cargo Facilities Income Fund (TSX: ACF.UN) (the "Fund"),
comprising approximately 34.7% of the Units outstanding. Following this
acquisition DSSS holds 2,686,579 Units, representing approximately 38.56% of
the Units outstanding, and FrontFour Capital exercises control over
3,098,653 Units, representing approximately 44.48% of the Units outstanding.
The 3,098,653 Units include the 2,686,579 Units beneficially owned by DSSS, as
well as 412,074 Units owned by FrontFour Holdings Inc. ("FrontFour Holdings"),
a corporation incorporated under the Business Corporations Act (British
Columbia). FrontFour Capital is the investment manager of DSSS, and is the
sole voting shareholder of FrontFour Holdings. Accordingly, FrontFour Capital
is deemed to exercise control over the Units owned by FrontFour Holdings and
DSSS. FrontFour Capital and FrontFour Holdings are deemed to be joint actors
with DSSS for Canadian securities laws purposes.
    The Units acquired today by DSSS were acquired in a single private
transaction pursuant to a unit purchase agreement ("Agreement") with FrontFour
Holdings for a purchase price of Cdn.$7.40 per Unit. The Agreement contains
standard representations and warranties.
    FrontFour Capital has acquired control over the Units owned by FrontFour
Holdings and DSSS for investment purposes. FrontFour Capital intends to
conduct a detailed review of the Fund and International Aviation Terminals
Inc., a company wholly owned by the Fund, and their respective operations,
assets, corporate structure, capitalization, policies, management and
personnel to determine what changes, if any, would be desirable in light of
such review and the circumstances which then exist. Such changes may result in
a revision of the distribution policy of the Fund, the raising of additional
capital to pursue higher return growth opportunities for the Fund, and may
also include effecting changes in management, including the number and
identity of trustees of the Fund. The specific changes, if any, to be made in
respect of the Fund or International Aviation Terminals Inc. have not been,
and will not be, determined until FrontFour Capital completes its review of
such entities.
    FrontFour Capital, DSSS and FrontFour Holdings may in the future take
such actions in respect of their holdings of Units of the Fund as they deem
appropriate in light of circumstances then existing, including the acquisition
or disposition of Units. FrontFour Capital, DSSS and FrontFour Holdings may
from time to time acquire additional Units in the open market or in privately
negotiated transactions, subject to availability of Units at prices deemed
favourable, the Fund's business or financial condition and other factors and
conditions FrontFour Capital, DSSS and FrontFour Holdings deem appropriate. In
addition, FrontFour Capital, DSSS and FrontFour Holdings may formulate other
purposes, plans or proposals regarding the Units to the extent deemed
advisable in light of general investment and trading policies, market
conditions or other factors.

    About FrontFour Capital

    FrontFour Capital Group LLC is a privately owned hedge fund management
company based in Stamford, Connecticut. DSSS is a Delaware statutory trust and
is fully managed by FrontFour Capital Group LLC. DSSS' address is Two Stamford
Landing, 68 Southfield Avenue, Suite 290, Stamford, CT 06902, United States.

    
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: or for a copy of the early warning report filed
on SEDAR by DSSS, please contact Zachary George at 1-877-744-1272

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DISTRESSED SECURITIES & SPECIAL SITUATIONS-1

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