Filing Alert: #Remington Files Chapter 11 in Delaware

Without a foil to drive sales, and beset by litigation, Remington Outdoor Company has sought Chapter 11 protection Delaware.

Company Background.

Founded in 1816, Remington is one of the oldest gun makers in the world.  Its products include the Bushmaster AR-15 style rifle that was used in the 2012 Sandy Hook shooting. Twenty children between six and seven years old, as well as six adult staff members, were killed. The company has been sued by victims’ family members.  In addition, the company’s sales fell 30% last year in the midst of an industry-wide “Trump slump.”

The Fast-Track Plan and Support Agreement.

Remington reports $100 million to $500 million in assets and liabilities. Its filing includes:

  • A plan, disclosure statement, and restructuring support agreement between Remington and its major secured creditors;
  • A motion seeking approval of a $100 million in financing, a $45 million bridge loan, a $193 million asset-based loan facility.

Under the fast-track plan, Remington’s key creditors – reportedly, Franklin Templeton Investments and JPMorgan Asset Management – would exchange their debt holdings for most of the company’s equity. Concurrently, the company’s current owner, Cerberus Capital, would relinquish its ownership interests. Remington has already begun soliciting approval of its plan. It has asked to forgo the usual procedure of filing a full schedule of its debts and assets.  And it has requested a voting deadline of April 26th and hopes to confirm its plan around May 3rd.

Remington has said that its efforts to finance a turnaround were complicated by parties who were reluctant to lend to a gun manufacturer. The creditors in the current deal reportedly agreed to the “debt-for-equity swap” prior to the Parkland shooting, and it is unclear if any have since pulled out.

Additional Information.

The case number is 18-10684.  Additional information, including the docket of filed pleadings and instructions for filing claims, can be found on its claim agent’s website: PrimeClerk.com.

Mette K.

Woodbridge Committee Formation Meeting Scheduled for 12/14/17

Woodbridge Group of Companies, LLC, a Sherman Oaks, California-based real estate finance and development company, has filed for Chapter 11 protection in Delaware.  The committee formation meeting is scheduled for December 14, 2017 at 10:00 a.m. at the Doubletree Hotel in Wilmington, Delaware.

The company says it intends to file a plan to substantially reduce its debt and transition its real estate investment business to institutional financing sources. It hopes to reorganize and successfully emerge as a profitable real estate investment before the end of 2018.

Additional information is available here.

Mette K.