Remington Emerges From Chapter 11 Bankruptcy
Good news for fans of Big Green — Remington remains a going concern…
On 5/17/2018, Remington Outdoor Company (“Remington”) announced that it has emerged from Chapter 11 after successfully implementing the reorganization plan recently approved by the Delaware Bankruptcy Court. Basically, the bankruptcy proceeding has converted debt into equity allowing Remington to move forward with significantly reduced debt load and associated interest costs.
“The Plan provides a comprehensive balance sheet restructuring of the Company and converts over $775 million of the Company’s debt into equity,” stated the Remington press release.
“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.” The Plan received support from over 97% of the voting Term Loan Lenders and all of the voting Third Lien Noteholders.
“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.”
Old Shared Cancelled, New Shares Issued to Previous Lenders
The bankruptcy essentially extinguished old Remington stock shares and replaced them with new shares: “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.”
Remington Has a Storied History
Founded in 1816 by Eliphalet Remington in New York, Remington is the oldest continuously-operating gun manufacturer in the United States. Even with its present difficulties, Remington still sells more sporting rifles and shotguns than any other American company. Remington has developed more cartridges than any other U.S. company. And it is the only American company that sells firearms AND ammunition under its own name.
