Remington Exits Bankruptcy
BY Herschel Smith
6 years, 7 months ago
U.S. weapons manufacturer Remington Outdoor Co Inc. said on Thursday it had emerged from Chapter 11 bankruptcy with less debt and more stable financing that may help it ride out a slowing market for firearms.
Remington, America’s oldest gunmaker, filed for bankruptcy protection in March, weeks after a shooting at a high school in Parkland, Florida killed 17 people and triggered intensified campaigns for gun control by activists.
Under the reorganization plan, inked two days before the Feb. 14 Parkland shooting, creditors including JPMorgan Chase & Co and Franklin Advisors will take ownership stakes in the company in exchange for forgiving more than $775 million of debt.
Remington also received a $193 million new lending package funded by seven banks, including Bank of America Corp.
“It is morning in Remington country,” Chief Executive Anthony Acitelli said in a statement.
Investors in Cerberus Capital Management LP, the previous owner, had urged the private equity fund to sell Remington after its Bushmaster rifle was used in a school shooting in 2012 in Sandy Hook, Connecticut, in which 20 children died.
Remington has said its bankruptcy would not affect lawsuits against it, including one filed by the families of Sandy Hook victims. It is also appointing a new board of directors.
Bank of America has hinted that it may sell its participation in Remington’s exit financing package.
“These companies have a real opportunity to solidify a brand that is in sync with what customers want now and in the future,” said gun control advocate Igor Volsky. He called Parkland “a tipping point for Americans waking up and saying that guns are a real problem.”
I’m not sure if this is “morning” or sunset in Remington country. Someone else now owns the controlling interest in Remington, apparently, and BoA is apparently looking for a buyer, while going on record saying that “guns are a real problem.”
You may be watching Remington in its death spiral.
On May 18, 2018 at 8:31 am, Fred said:
“The rich ruleth over the poor, and the borrower is servant [literal = slave] to the lender.”
On May 18, 2018 at 8:33 am, dad29 said:
Well, maybe.
You’ve been in business long enough to know that no one except Dick’s actually tries to LOSE money on a holding. So we can expect that BoA, Franklin, and Chase will do their best to maintain positive value in Remington.
That said, it’s clear that Remington’s management deserves a serious butt-kicking.