Bank Of America To Make Bankruptcy Loan To Remington
BY Herschel Smith
6 years, 6 months ago
Bank of America Corp is preparing to provide critical financing to Remington Outdoor Co, which makes assault-type rifles, just weeks after the U.S. bank said it would stop financing “military-style” firearms for civilians.
The bank is contributing $43.2 million to a $193 million lending package funded by seven banks, according to court documents, which will help put Remington back on stable footing as it emerges from bankruptcy later this month into an uncertain environment for gun makers.
The package replaces a similar credit facility the banks committed to providing Remington. Both were agreed in late March, before Bank of America, the second-largest U.S. bank by assets, changed its policy to stop financing companies that make military-style guns for civilian use.
Anne Finucane, Bank of America’s vice chair, said in April that the bank had decided on its pledge to help reduce mass shootings, saying in an interview with Bloomberg TV that “it is not our intent to underwrite or finance military-style firearms on a go-forward basis.”
[ … ]
But withdrawing from the deal would hurt the bank’s reputation for standing by its lending agreements and could undermine Remington’s survival, according to one person familiar with the bank’s thinking.
Surely BoA knew about this loan package before it’s stupid announcement on other firearms manufacturers.
That means one of two things. Either BoA is full of liars and crooks who were only trying to make an appearance of cooperating with the gun controllers, or Remington has been strong armed and is preparing to jettison its Bushmaster line of guns.
If the first is true, it doesn’t mean BoA will lend in the future to firearms manufacturers. It just means that they are liars. If the second is true, this is the end for Remington. There will be no recovery. Tikka can easily supplant the Remington 700 because it’s a better gun.
On May 7, 2018 at 9:05 am, Fred said:
“Surely BoA knew about this loan package before it’s stupid announcement on other firearms manufacturers.”
Not necessarily. It’s a huge bureaucracy.
And it’s extraordinarily poorly run. How do I know this? There were plenty of banks that didn’t need bailouts. In the real world it wouldn’t even exist anymore. Poof, gone, into a dust pile of debt instruments and untraceable derivatives. That’s how bad an organization it is. (Debt is not capital.)
And that’s what ticks me off about it. It’s basically a state run enterprise. All Justice or Trump would have to do is tell them to stop discriminating against the owners of a property that is a legal civil right. Trump is a gun controller.
On May 7, 2018 at 1:49 pm, Gryphon said:
Unlikely that this is a ‘bureaucratic Mistake’ by this organization. By having Financial Control of Remington, the Creditors OF COURSE can Decide what Products it will Produce, and to whom they will Sell To, under what Conditions.
This is a Classic Example of the (((bolsheviks))) using their Fiat Paper Money to advance an Anti-American political agenda.
p.s. Fred -Trump was a NEW YORK DEMOCRAT for 30+ Years, what did You expect from a shitweasel politician?
On May 7, 2018 at 2:28 pm, Fred said:
Gryphon,
The control angel did cross my mind. I still doubt that BofA would back a company to lose money. That said, it’s large corporations that buy small competitors just to eliminate the competition. I haven’t heard of buying an asset to ruin it, based upon philosophical reasons, since the time of the Robber Barons. I’m not eliminating this new frontier as a possibility but seriously, if BofA thinks it can make money eating children alive on Opera they’ll do it. They love money. They also might have known and just though that the snowflakes are idiots and won’t even know that they invested playing both sides. That’s also a distinct possibility.
And, I didn’t state that Trump is a gun controller for those who know this already. It’s to flip off the god emperor idiots. And I love telling liberals that I don’t like him because he’s a new york liberal just like hillery. The anguished expressions are priceless. You should try it.
On May 7, 2018 at 2:52 pm, billrla said:
BofA is going to cram disarmament down Remington’s throat.
Look at the big picture. There’s a California Senate bill that would push CALPERS, the giant CA state pension fund, to divest gun stocks and demand plans from gun manufactures for cessation of gun manufacturing.
The current bankster-corporate-investor onslaught is a coordinated effort to end-run the legislative and judicial process. Of course, politicians are totally on-board, because: Money!
Basically, politicians and banksters want to force gun manufacturers to commit suicide.
On May 7, 2018 at 3:00 pm, Georgiaboy61 said:
Re: “If the second is true, this is the end for Remington. There will be no recovery. Tikka can easily supplant the Remington 700 because it’s a better gun.”
For readers who keep track of such things, Sako and Tikka are now owned by the Italian firm of Beretta, one of the oldest and most-respected firearms manufacturers on earth. Sako isn’t independently-owned by the Finns and hasn’t been in some time.
It is germane to note that, while Sako-Tikka firearms are of superb quality, neither make has anything like the variety or sheer amount of after-market accessories that have been developed for the Remington 700 bolt-action rifle platform. Likewise, spare parts are not as easily-obtained for the Sako-Tikka lines as for Remington 700s. That’s not a factor now, but it may be in the future.
Two more highly-respected and storied gun-makers are Browning and Winchester, both of which are now owned and operated by Fabrique National-Herstal of Belgium. Although FN-H is Belgian, the firm has extensive ties to Ogden, Utah, where the great John Browning first plied his trade, and his son, Val, as well – both of whom worked for FN over their long careers.
Present-day Winchester Model 70 rifles are superb, excelling even the fabled pre-1964 models for quality of workmanship and performance.
The comments about Sako-Tikka also apply here, concerning after-market accessories, parts and customization options.
However, if you are in the market for a superb bolt-action rifle, and haven’t tried Winchester recently, do yourself a favor and check them out. You’ll be glad you did.
On May 7, 2018 at 3:01 pm, Fred said:
“…the giant CA state pension fund, to divest gun stocks and demand plans from gun manufactures for cessation of gun manufacturing.”
This makes no sense. If they’re divesting they have less voting shares. How can they then force anything? They might-could stay invested and threaten to sell or else!
On May 7, 2018 at 3:03 pm, Herschel Smith said:
@Georgiaboy,
Winchester rifles (while built at the FN plant down the road from me in SC) are actually made in Portugal. Or, the parts are made in Portugal.
The last time I looked into it, they were simply impossible to obtain and no one knew when they were going to be available because FN retools their line to make a slew of products, retools and makes a slew of another, and so on.
On May 7, 2018 at 7:45 pm, Bill Robbins said:
@Fred: Don’t forget, no one in the CA legislature understands capitalism or has any idea how the stock market works. CA laws are made soley on feelings.