Remington Set to Emerge from Bankruptcy

Creditors Take Ownership, Day-to-Day Business to Remain Undisrupted

We had been hearing rumors about the imminent demise of Remington Outdoor Company for some time before it was officially announced in March. Many were unsurprised at the news given the changes made in management, product lines, and customer support over the past several years, but it was tough to see the two-century old “Big Green” circling the drain.

“Fake News” sources cited fallout from lawsuits surrounding the Sandy Hood killings in Newtown as one of the driving factors behind Remington’s problems, despite broad protections for manufacturers. More likely, the money troubles stem from product recalls, failed product launches, and slumping sales of the few new product lines that did launch.

Before a federal judge yesterday, Remington Outdoor Company Inc gained approval for its reorganization plan – which was largely completed at the time of the original filing – that intends to cut debt and boost their cash position and cancel over $775 million of their debt. The company says that the plan was supported by more than 98% of voting Term Loan Lenders and all voting Third Lien Noteholders.

Remington plans to exit bankruptcy as early as this month, with some of its creditors, including JPMorgan Chase and Franklin Advisors receiving ownership stakes in the company in exchange for forgiving debt with Cerberus Capital Management abandoning their equity in the company.

As a result of the deal Remington will take on a new Asset Based Loan of $193 million which will fully refinance the current ABL, as well as a $55 million First-In, Last-Out Term Loan and a new $100 million Term Loan.

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