Remington Outdoor Co., “Big Green,” announced on May 17 that it has emerged from Chapter 11 bankruptcy after the firearms and ammunition manufacturer implemented its plan of reorganization to reduce about $775 million of the company’s debt.
Remington filed its reorganization package with the United States Bankruptcy Court for the District of Delaware in late March. As detailed in the reorganization package, Remington converted $775 million in debt to equity. The company now has a $55 million First-In, Last-Out Term Loan and a new $100 million Term Loan, and $193 million in a rollover asset-based lending facility, according to business publications.
In addition, Remington cancelled stock issued prior to bankruptcy proceedings and issued new shares, including warrants to the holders of its previously outstanding funded debt in return for their allowed claims against Remington. A new board of directors will also be appointed.
“It is morning in Remington country,” said Remington CEO Anthony Acitelli in a press release. “We are excited about the future—producing quality products, serving our customers, and providing good jobs for our employees.”
Remington Outdoor Co., the holding company formerly known as The Freedom Group, is one of the world’s largest manufacturers of firearms and ammunition, including such brands as Remington, Bushmaster Firearms, DPMS/Panther Arms, Marlin, H&R, The Parker Gun, Tapco, Advanced Armament Corp., Dakota Arms, Nesika, Stormlake, Timbersmith and Barnes Bullets.
Bloomberg News reported that the reorganization plan was confirmed by a Delaware bankruptcy court earlier in May.