Remington Files for Chapter 11

The oldest name in American firearms officially filed for Chapter 11 bankruptcy protection March 25. The filing was made in U.S. Bankruptcy Court, District of Delaware. Brands and/or companies associated with the filing include Remington Outdoor Company Inc. (ROC), Remington Arms Company LLC, Remington Arms Distribution Company LLC, Barnes Bullets LLC, FGI Operating Company LLC, FGI Holding Company LLC, FGI Finance Inc., TMRI Inc. and RA Brands LLC.

The move was made, as expected, after ROC announced on its website Feb. 12 the formation of a “restructuring support agreement” (RSA) with various creditors. ROC is the parent/holding company of Remington Arms, Marlin, DPMS, Bushmaster, Barnes Bullets, Dakota Arms, H&R, Parker Gun, Nesika and more. ROC reported $865.1 million revenue and $18.9 net income in 2016, the latest year for which figures are available.

The RSA removes $700 million of the company’s $950 million of debt. Under its terms, lien lenders will provide $145 million in loans to fund ROC’s operations and Chapter 11 cases. First lien holders will receive 82.5 percent equity in a reorganized Remington; third lien holders will receive 17.5 percent equity.

Essentially, Cerberus Capital Management, which purchased Remington in 2007 for $118 million, will walk away with $700 million of ROC debt, and cede majority ownership to the two first lien holders: JPMorgan Asset Management and Franklin Templeton Investments.