Remington enters agreement for bankruptcy plans
By Daniel Terrill
A Remington representative helping patrons during the 2018 SHOT Show in Las Vegas. (Photo: Daniel Terrill/Guns.com)
Remington Outdoor Company, one of the largest gun makers in the country, reached a restructuring support agreement with creditors to reduce outstanding debt and fund operations during bankruptcy proceedings.
Creditors agreed to reduce Remington’s outstanding debt by some $700 million and to contribute $145 million in capital to fund operations, according to Monday’s statement.
The restructuring agreement sets conditions for reorganization of debt payments due in 2019 and 2020 through a pre-packaged plan for chapter 11 protections to be filed in a Delaware bankruptcy court. The company’s loan debt is more than $950 million.
In addition to allowing the company to maintain business operations throughout the process, the plan will also arrange a new asset-based loan facility at emergence, the proceeds of which will refinance the existing ABL facility in full, and lenders will receive 82.5 percent of the equity plus their share of $2.67 million in cash.
“We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities,” Remington chief executive officer Anthony Acitelli said in the statement. “We look forward to serving