The biggest financial hurdle facing Remington Outdoor Company's continued operation was officially cleared this morning when the company announced it has emerged from bankruptcy protection and in the process of reorganizing with a new Board of Directors. As part of a Delaware court-approved plan, $775 million of the firm’s debt was converted to equity.
The company originally filed in March 2018, a point at which the company was nearly $1 billion in the red. The speedy emergence caught many financial experts by surprise, although some said a lending package totaling $193 million from Bank of America and six other lenders helped.
Anthony Acitelli, CEO of Remington, said in a press release, “It is morning in Remington country…We are excited about the future—producing quality products, serving our customers, and providing good jobs for our employees.” Operations will continue uninterrupted, too. “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.”
Remington Outdoor is comprised of 13 different firearm-related companies, including Remington—the oldest gunmaker in the United States. Other firearm-related companies in its stable include Marlin, DPMS Panther Arms, Advanced Armament, Bushmaster, The Parker Gun, Harrington & Richardson, Barnes Bullets, Nesika, Storm Lake Barrels, Dakota, Tapco and Timbersmith.
In 2007, Remington was purchased by Cerberus for $370 million, although the private equity firm is now surrendering ownership under terms of the protection agreement.
