In a quick-turnaround, even by pre-packaged bankruptcy standards, Remington Outdoor announced today that they’ve emerged from Chapter 11. The filing allowed the company to shed $775 million of their crushing $950 million debt load. Remington also has a new $193 million asset-based lending facility in place to finance operations going forward.
In exchange for forgiving the debt, the company’s creditors have taken over ownership of the company from Cerberus Capital Management. All previous board members’ terms have been cancelled and the creditors will be appointing new directors. The big question now is, assuming the creditor/owners don’t want to continue to run a gun manufacturer, what will happen to Remington Outdoor’s various brands as creditors move to recoup their losses.
Here’s Remington’s press release . . .
Madison, NC – May 16, 2018 – Remington Outdoor Company (“Remington” or “the Company”), one of the world’s leading designers and manufacturers of firearms, ammunition, and related products, announced today that it has emerged from Chapter 11 after successfully implementing its plan of reorganization (“the Plan”) previously confirmed by the Delaware bankruptcy court on May 4, 2018.
The Plan provides a comprehensive balance sheet restructuring of the Company and converts over $775 million of the Company’s debt into equity. In addition, the Plan provides the Company with a new Asset Based Loan (“ABL”) facility of $193 million, the proceeds of which will refinance its prior ABL facility in full, a new $55 million First-In, Last-Out Term Loan and a new $100 million Term Loan. As an integral part of the Plan, all trade and business claims are unimpaired and will be addressed in the Company’s normal course of business. The Plan received support from over 97% of the voting Term Loan Lenders and all of the voting Third Lien Noteholders.
As provided in the Plan, all shares of Remington’s common stock issued prior to the commencement of Remington’s bankruptcy proceeding were cancelled upon emergence, and Remington has issued new shares of common stock and, in some cases, warrants, to the holders of its previously outstanding funded debt in return for their allowed claims against Remington. The term of Remington’s previous Board of Directors expired upon emergence and a new Board of Directors shall be appointed immediately.
“It is morning in Remington country,” said Anthony Acitelli, Chief Executive Officer of Remington. Mr. Acitelli continued, “We are excited about the future – producing quality products, serving our customers, and providing good jobs for our employees.”
Remington’s legal counsel is Milbank, Tweed, Hadley & McCloy LLP, its investment banker is Lazard Freres & Co. LLC, and its financial advisor is Alvarez & Marsal. The Term Loan Lenders’ legal counsel is O’Melveny & Myers LLP and their investment banker is Ducera Partners LLC with M-III Advisory Partners, LP also advising the Term Loan Lenders. The Third Lien Noteholders’ counsel is Willkie Farr & Gallagher LLP and their investment banker is Perella Weinberg Partners LP.
Court filings and claims information may be accessed at https://cases.primeclerk.com/remington/
I wonder how many folks got screwed Chevy style on this deal?
Zero taxpayers. That’s the important thing.
With GM, the interests of secured creditors (those with a security interest in specific assets) were thrown out the window and the assets were given to the employees’ union.
Here, the creditors got everything, and all stockholders’ interests were extinguished (what normally happens when bankruptcy laws are actually followed).
I still don’t understand how that was allowed to happen with GM. How did the law just get set aside and everything handed over to the unions?
Because Obama pushed the deal through the fed, congress did nothing to stop him. That’s pretty much how obama accomplished everything he did. It’s also why Trump has had such an easy time tearimg dowm his legacy. When you rule by fiat, your legacy is easily undone.
No. It freed up money so that GM could build a new Buick plant in China.
I think I can answer your question in about three words: Obama . . . Democrats . . . Socialists.
Well, that was… Fast.
Suspiciously fast, actually.
Who holds the ‘levers of power’ at Remington now?
Armatix GmbH, perhaps?
Hopefully Big Green will still pull out of Dick’s Sporting Goods, as broke as they are.
Hopefully they can also bring their quality control back up to where it should be.
You never know, this could be the start of something great at Big Green.
Or it could be the beginning of the end, based on the “smart guns” article from yesterday.
Just let someone make a good “smart” gun and have the Jersey crap play out. Who knows, a “good” smart gun may actually be useful where rentention is a bigger issue than full out reliability.
“Window 10 3/4 has encountered a fatal error : Trigger driver. Exe Not found. Missing DLLs.
Magazine driver. Exe not found. Missing DLLs.
Firing pin Driver. Exe not found. Missing DLLs.
Please install latest Direct X 17—Smartgun software…If problems persist. Please contact Microsoft customer svss.—after additional company 7- day waiting period and expanded background/Mental Healthcare checks. If this is an Emergency. Please dial 911, and contact your local police department…”
Your flash player is out of date! (is an ad ticking down)
Don’t be stupid. I can see the use for this for prison guards for example.
Repeat after me “retention is a bigger issue than full out reliability”
Where retention is more important than reliability, do you mean civilian law enforcement, which has been excluded from every smart gun mandate I’ve ever seen proposed or enacted?
Where did “mandate” come from. Let NJ deal with the stupid law once and for all.
I know personally one cop that used (retired now) a magloc ring style gun. He had a ring on each hand. He lost control of his gun once, so the “smart” gun provided value to him. There are places that a smart gun makes sense.
The biggest issue is all the stupid political crap and expectations on what a “smart” gun can and cannot do. It is not going to prevent a stolen gun from ever being used in a crime, nor is it necessary more likely to fail on you when it is needed. (Not if it a good one). It is just a modification to a tool that ideally makes it more “useful”.
Cool. This means I can continue to buy their RemOil and nothing else. Their guns are meh.
Their “slugger” ammo isn’t bad. Every now and then I used to see it pop up on BulkAmmo for a decent price in bulk. Sitting on more than I’ll ever need thanks to that.
Good, because the alternative clearly would be making guns people would want to buy, and clearly Remington’s having none of that.
To be fair people wanted the R51. They just screwed it so badly by the end they were offering folks $700+ 1911s in exchange rather than attempt to fix them.
Although a totally failed gen1 and $700 for a $300 gun might also explain the money troubles.
A 22 oz. 7 shot single stack carry gun. Yes, please take my money. My K9 is 23 OZ and it is all stainless steel
No kidding. Even with 7rds in the mag, the Micro 9 is lighter than that.
Hey, they were supposed to have the 1894 in .357 back in production this year. I want one of those.
Why is there no coverage about Nikon pulling out of the NRA Convention?
That’s messed up. Guess I won’t be getting that Spur anytime soon.
Guess I won’t be using a Nikon camera….
Nikon — as in the company that makes rifle scopes in addition to cameras?
I need to hear more about this. How could a rifle scope company possibly rationalize pulling out of the NRA???
Simple, they are an optics company that makes rifle scopes, not a political organization. And they make rifle scopes, not coolers, so there is no way the NRA will go after them (unless someone gets really stupid).
“How could a rifle scope company possibly rationalize pulling out of the NRA???”
They’ve seen the NRA exists only to line the pockets of the senior management and not protect gun rights?
On a guess, still broken… Unfortunately.
Meh…I’ll buy RemOil but nothing else. I can’t wait(lol)to see how all this plays out😄
The ammo is ok, never a problem with it. I’d like to see Marlin go to a good home.
Remington still makes firearms? Maybe I’m mistaken, but shouldn’t the device be able to fire to be called a firearm? Remingtons, last time I checked, don’t seem capable of firing anymore.
My Tac-14 has never had an issue.
Their 700s fire just fine as long as you have the safety on and don’t pull the trigger.
Never was attracted to Remington firearms. They seem to be a middle-of-the-road brand, never really excelling at much. Please they had a lot of problems with their 700s. I personally think they’ll have a tough time convincing everyone that nothing’s changed.
Things might pick up getting out of Cerebus.
“a quick-turnaround, even by pre-packaged bankruptcy standards”
I once handled a pre-pack that was in and out the same day. I also handled a pre-pack where the debtor got a buy-in from 100% of the creditors prior to filing and never went to court at all (it’s called a composition).
I have one vintage revolver that will only chamber Remington 38 S&W. I hope it will still be available!
For the Rem oil users….for your consideration.
It’s mind-blowing that a company making firearms and ammunition can fail when the market for both has been so hot for so long. Something is VERY wrong with company management when the market trend is sharply UP and their profits are down. If nothing changes they have simply bought themselves some time until the next bankruptcy and current shareholders are screwed in favor of the next round of suckers who lent to them. Fool me once, shame on you….