Remington Outdoor Company (ROC) and 12 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10684. The Company, which manufactures and markets firearms, ammunition and related products, is represented by Laura Davis Jones of Pachulski Stang Ziehl & Jones.
The Company explains, “Remington currently is significantly overleveraged and facing severe liquidity constraints.” Concurrent with its Chapter 11 petition, ROC also filed a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement. The Disclosure Statement notes, “Remington is pleased to announce that the Plan provides for a restructuring of Remington…that will eliminate approximately $620 million in debt from its balance sheet. As a result, Remington will emerge from the Chapter 11 Cases…a stronger company, with a sustainable capital structure that is better aligned with Remington’s present and future operating prospects….On the effective date of the Plan…, ROC will receive and immediately distribute to Third Lien Noteholders, in full and final satisfaction of the ROC DIP Facility and the settlement of any intercompany claims of ROC against its subsidiaries, 17.5% of the new common units of Reorganized ROC, plus Cash in an amount equal to all accrued and unpaid postpetition interest on the ROC DIP Facility.”
Anthony Acitelli, ROC’s chief executive officer, states, “Importantly, the fundamentals of our core business remain strong….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.”
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