Madison, NC – May 16, 2018 – Remington Outdoor Company (“Remington” or “the Company”), one of the world’s leading designers and manufacturers of firearms, ammunition, and related products, announced today that it has emerged from Chapter 11 after successfully implementing its plan of reorganization (“the Plan”) previously confirmed by the Delaware bankruptcy court on May 4, 2018.
The Plan provides a comprehensive balance sheet restructuring of the Company and converts over $775 million of the Company’s debt into equity. 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. As an integral part of the Plan, all trade and business claims are unimpaired and will be addressed in the Company’s normal course of business. The Plan received support from over 97% of the voting Term Loan Lenders and all of the voting Third Lien Noteholders.
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. The term of Remington’s previous Board of Directors expired upon emergence and a new Board of Directors shall be appointed immediately.
“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.”
Remington’s legal counsel is Milbank, Tweed, Hadley & McCloy LLP, its investment banker is Lazard Freres & Co. LLC, and its financial advisor is Alvarez & Marsal. The Term Loan Lenders’ legal counsel is O’Melveny & Myers LLP and their investment banker is Ducera Partners LLC with M-III Advisory Partners, LP also advising the Term Loan Lenders. The Third Lien Noteholders’ counsel is Willkie Farr & Gallagher LLP and their investment banker is Perella Weinberg Partners LP.
Court filings and claims information may be accessed at cases.primeclerk.com/remington
www.remingtonoutdoorcompany.com
How can I convert my debt to an asset? Asking for a friend….
I read that part to, and was like wtf… I hate to say it but reading this made me think that they screwed some debt holders over, then based their new asset based loan off of their new facilities in huntsville. Sadly i think this will end poorly and the vultures will be picking over the scraps.
How do they get debt to go away? Doesn’t that mean someone is getting screwed?
I’m not sure, and I could be totally wrong, but, the way I read this, all the owners of “common stock” are left holding nothing, vapor. The holders of the debt don’t get cash, instead they get “equity” (ie: a piece of ownership) in the form of a new issue of “common stock”. I gonna guess that owners of any (unmentioned) “preferred stock” keep their ownership stake and probably laugh all the way to the bank…and maybe even benefit from all kinds of write-offs and stuff. But I’m neither a finance guy nor a bankruptcy lawyer.