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Thread: Remington Restructuring Announcement

  1. #11
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    Quote Originally Posted by oddball_ted View Post
    Well they had a few Rem-lin problems when they bought Marlin. But crappy products ? That's a bit much. They just don't pump out plastic guns or tactical ninja stuff
    I mean crappy in the sense that their quality control went to absolute garbage when they got bought out by freedom group, people receiving guns rusted from the factory, or rusting shortly after buying them, jamming and other such issues that people used to never associate with Remington, on top the R51 and RP9 completely tanking it's not exactly surprising why they've gone bankrupt. Whenever somebody asked "What should my first shotgun be", the answer would almost always be "Remington 870", now it's "Mossberg 500/590, unless you can find a pre freedom group 870".

  2. #12
    CGN Regular Mad-Dog's Avatar
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    Quote Originally Posted by Gravel Agency View Post
    Remington Outdoor Company Announces Restructuring Support Agreement with Creditors for a Comprehensive Financial Restructuring and $145 million of New Capital

    Normal Operations Will Continue During Restructuring Period

    Remington’s Liquidity and Competitiveness Enhanced

    All Claims including Trade Payables to be Honored


    Madison, NC – February 12, 2018 – Remington Outdoor Company (“Remington” or “the Company”) today announced that it has reached a Restructuring Support Agreement (“RSA”) with creditors holding a majority of the FGI Operating Company, LLC (“FGI OpCo”) Term Loans due in 2019 and 7.875% Senior Secured Notes due in 2020 (the “Third Lien Notes”) (collectively, the “Consenting Creditors”). The RSA provides for the reduction of approximately $700 million of Remington’s consolidated outstanding indebtedness and the contribution of $145 million of new capital into Remington’s operating subsidiaries, markedly strengthening the Company’s consolidated liquidity, balance sheet, and long-term competitiveness.

    The RSA, subject to certain conditions, represents the commitment of the Company and Consenting Creditors to support a comprehensive restructuring of Remington’s existing funded indebtedness. The balance sheet restructuring will be effectuated through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware in connection with the Company’s filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.

    Remington’s business operations will continue to operate in the normal course and will not be disrupted by the restructuring process. Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption.

    Executive Chairman of Remington, Jim Geisler, commented, “Since its founding over 200 years ago, Remington has been a uniquely American company and brand. Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results. Difficult industry conditions make today’s agreement prudent. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.”

    Anthony Acitelli, Remington’s Chief Executive Officer, stated, “Importantly, the fundamentals of our core business remain strong. We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. 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. We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future.”

    Key elements of the RSA and balance sheet restructuring are outlined below:

    • All existing unsecured and priority claims of Remington Outdoor Company and each of
    its subsidiaries (other than funded debt claims) will be unimpaired, including trade
    payables.

    • With the consent of a majority of the holders of the Term Loans (the “Term Loan
    Lenders”) and the Third Lien Notes (the “Third Lien Noteholders”), Remington Outdoor
    Company will provide a $45 million delayed draw first-out first lien term loan (the “First-
    Out Term Loan”) to FGI OpCo. This facility will roll into a debtor-in-possession term loan
    upon the Chapter 11 filing (the “ROC DIP Term Loan”).

    • The Consenting Creditors will provide a $100 million debtor-in-possession term loan
    (the “DIP Term Loan”) to fund the Company’s Chapter 11 Cases. Upon exiting
    bankruptcy, the DIP Term Loan will be converted into an Exit Term Loan.

    • The Company will arrange a new asset-based loan (ABL) facility at emergence, the
    proceeds of which will refinance the existing ABL facility in full.

    • The Term Loan Lenders will equitize their claims and receive 82.5% of the equity in
    Reorganized Remington. These lenders will also receive their Pro Rata share of $2.67
    million in cash at emergence.

    • The Third Lien Noteholders will receive (i) 17.5% of the equity in Reorganized Remington
    through the equitization of the ROC DIP Term Loan, and (ii) 4-year warrants for 15% of
    the equity in Reorganized Remington at a strike price to be derived at emergence based
    on a $700 million enterprise value. The Third Lien Noteholders will also receive their pro
    rata share of the remaining cash at Remington Outdoor Company.

    The RSA may be terminated upon the occurrence of certain events, including the failure to
    meet specified milestones relating to the filing, confirmation, and consummation of the
    restructuring. There can be no assurances that the restructuring will be consummated upon the
    terms described above.

    Remington’s legal counsel is Milbank, Tweed, Hadley & McCloy LLP, its investment banker is
    Lazard, and its financial advisor is Alvarez & Marsal Capital Partners. The Term Loan Lenders’
    legal counsel is O’Melveny & Myers LLP, and their investment banker is Ducera Partners LLC.
    The Third Lien Noteholders’ counsel is Willkie Farr & Gallagher LLP, and their investment banker
    is Perella Weinberg Partners L.P.

    About Remington Outdoor Company

    Remington Outdoor Company, headquartered in Madison, N.C., is one of the world’s leading
    innovator, designer, manufacturer, and marketer of firearms, ammunition, and related
    products for the hunting, shooting sports, law enforcement, and military markets. As one of the
    largest manufacturers in the world of firearms and ammunition, we have some of the most
    globally recognized brands including Remington, Bushmaster, DPMS/Panther Arms, Marlin,
    H&R, Dakota Arms, Parker, AAC, Barnes Bullets, Storm Lake and Tapco. For more information
    download the Remington Outdoor Company Brochure, located on
    www.remingtonoutdoorcompany.com.

    Media Contact
    John McKenna
    ICR, Inc.
    (203) 682-8252
    John.McKenna@icrinc.com
    The lengthy announcement from Remington is just legalese by lawyers, for lawyers, and is targeted mainly at US investors. The majority of CGN members are end users of Remington's products. What matters most to Remington's CANADIAN customers is missing.

    The announcement gives two quite different versions of what will occur during restructuring: "Normal operations will continue...the restructuring support agreement may be terminated upon the occurrence of certain events, including the failure to meet specified milestones...there can be no assurances that the restructuring will be consummated."

    Having seen many of these types of notices in the past, this one is typically noncommittal.

    Gravel Agency, please provide the following information:

    1. How will Remington's Chapter 11 filing affect its warranty obligations to customers? In other words, is Remington standing behind its warranties?

    2. How will this filing under US bankruptcy law affect Gravel Agency's service to Canadian customers on Remington non-warranty work? In other words, does Gravel still represent Remington during the restructuring?

    3. How will Remington's filing affect the availability of firearms replacement parts and components during the restructuring and going forward?

  3. #13
    Member tactical72's Avatar
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    Quote Originally Posted by derrick1978 View Post
    In the end the Trump presidency helped Hillary achieve her desired goal.
    I didn't know Hillary was trying to bankrupt Remington? wow.

  4. #14
    Uber Super GunNutz hunterhenderson's Avatar
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    Quote Originally Posted by Rod B View Post
    Now that the greedy pricks from Cerebrus are out of the picture perhaps Remington can recover.

    I wish them all the best, it's a sad thing to see this great old firm go under.
    Interesting you say that. I owned a Chrysler Dealership when Cerberus were the owners, It was by far the worst time I have spent as a dealer in 35 years, they stole all the designs , ran the company into the ground and left Chrysler with nothing
    One of the ORIGINALS!!

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  5. #15
    CGN Ultra frequent flyer struff55's Avatar
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    Well Mad Dog they will likely just stop all warranty claims that will likely save them millions of $'s which will then help with there bottom line .

  6. #16
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    Quote Originally Posted by tactical72 View Post
    I didn't know Hillary was trying to bankrupt Remington? wow.
    Do some research

    https://www.washingtontimes.com/news/2016/apr/26/most-americans-disagree-clinton-suing-gun-makers/

  7. #17
    CGN Regular KCCO1989's Avatar
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    anyone else just waiting for discounts

  8. #18
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    I'm not surprised at all. Apparently some bad practices at that company since 1947.

    https://www.youtube.com/watch?v=oS_GDpZM3ak

  9. #19
    CGN Regular Battlerifleelitist's Avatar
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    Good on 'em for trying a different approach. Shame Cerberus Group kinda pump 'n' dump'd the entire Freedom group/

    Rem 700 has always been good, not earth shattering either way, but I've heard stellar things about the 783.
    I was about to pull the trigger on a 5r rifle.
    I hope this gives them the needed capital to repair some inconsistencies they've had in, say, finishes or whatnot.
    "That rifle hanging on the wall of the working-class flat or labourer's cottage is the symbol of democracy. It is our job to see that it stays there."
    -- George Orwell

  10. #20
    GunNutz Big Uke's Avatar
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    I guess that they turned down my offer to buy Marlin for $26 worth of beads......

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