Item 1.01. Entry into a Material Definitive Agreement.

Horizon Lines, Inc. entered into a plea agreement, dated January 26, 2012, with the United States Attorney's Office for the Northern District of California, under which the Company will plead guilty to two counts of providing federal authorities with false vessel oil recordkeeping entries. The plea agreement is subject to court approval.

The Company agreed to pay a fine of $1 million and donate an additional $500,000 to the National Fish & Wildlife Foundation for environmental community service programs.

A copy of the press release describing the resolution with the United States Attorney's Office for the Northern District of California is attached as Exhibit 99.1 hereto, and is herein incorporated by reference.