Fear & Loading: Remington Bankruptcy Reorganization/New Owners

by
posted on February 13, 2018
mistrust.jpg (1)

The financial challenges faced by Remington Outdoors are well known, but an announcement by the company yesterday that it was restructuring and filing for protection under Chapter 11, according to CNN, indicates “Cerberus [the firm’s current owner] will give up that ownership once restructuring is complete … .”

The Remington Outdoor press release explains it has reached a “… Restructuring Support Agreement (RSA) with creditors holding a majority of the FGI Operating Company, LLC (‘FGI OpCo’) Term Loans due in 2019 and 7.875% Senior Secured Notes due in 2020…The RSA provides for the reduction of approximately $700 million of Remington’s consolidated outstanding indebtedness and the contribution of $145 million of new capital into Remington’s operating subsidiaries, markedly strengthening the Company’s consolidated liquidity, balance sheet, and long-term competitiveness.”

“The balance sheet restructuring will be effectuated,” it explained, “through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware in connection with the Company’s filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.”

The company isn’t the industry’s first to file for protection during reorganization. It is, however, America’s oldest gun maker, and that legacy didn’t escape the attention of Remington Executive Chairman Jim Geisler. “Since its founding over 200 years ago, Remington has been a uniquely American company and brand,” he said. “Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results. Difficult industry conditions make today’s agreement prudent. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.”

“Remington’s business operations will continue to operate in the normal course and will not be disrupted by the restructuring process,” the press release stated. “Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption.”

Latest

Century BFT 01
Century BFT 01

New For 2024: Century Arms BFT74 & BFT556

Century Arms expanded its AK-style BFT rifle line in 2024 with two new models chambered for 5.56 NATO and 5.45x39 mm, respectively.

Preview: Armaspec SRS AR-15 Kit

This Armaspec upgrade to the AR-15’s standard buffer and spring includes a trio of interchangeable buffer weights that allow the user to tune it to his or her rifle/load.

Gun Of The Week: Davidson’s Exclusive KelTec KS7

Join American Rifleman staff on the range this week with a unique version of KelTec's KS7 bullpup shotgun.

The Armed Citizen® Nov. 1, 2024

Read today's "The Armed Citizen" entry for real stories of law-abiding citizens, past and present, who used their firearms to save lives.

Hydra Weaponry Expands To New Facility

Hydra Weaponry—the designer and manufacturer of the modular Marck-15 Hydra Weapon System and Maine’s largest firearm employer—has expanded into a larger facility.

Review: Bushmaster M4A2 Patrolman's Carbine

The M4A2 Patrolman’s Carbine from Bushmaster Firearms is the first in a line of AR-15s designed to bring back the standard, carbine-length firearms that have long been a staple of American shooting enthusiasts.

Interests



Get the best of American Rifleman delivered to your inbox.