Remington Outdoor Co., parent company of the Remington Arms plant in Ilion, has emerged from Chapter 11 bankruptcy, the company announced Thursday.
The reorganization plan, confirmed by a Delaware bankruptcy court earlier this month, converted more than $775 million in debt into equity.
“It is morning in Remington country,” said Anthony Acitelli, CEO of Remington in a statement. “We are excited about the future — producing quality products, serving our customers and providing good jobs for our employees.”
The North Carolina-based company — which includes 13 brands, manufacturing rifles, ammunition and silencers, among other products — first announced it would enter bankruptcy in February. That decision came after Cerberus Capital Management acquired Remington in 2007 and the firearms and ammunition giant accumulated nearly $1 billion in debt.
Certain stakeholders, some of whom haven't been publicly identified, started putting out feelers for potential strategic buyers in April, people with knowledge of the matter told Bloomberg News at the time.
The company's reorganization plan provides a comprehensive balance sheet restructuring of the company, according to a news release. In addition to converting debt to equity, the plan provides the company with a new Asset Based Loan facility of $193 million, the proceeds of which will refinance its prior ABL facility in full, a new $55 million first-in, last-out term loan and a new $100 million term loan.
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, the release states. The plan received support from more than 97 percent of the voting term loan lenders and all of the voting third lien noteholders.
As provided in the plan, all shares of Remington’s common stock issued prior to the commencement of Remington’s bankruptcy proceeding were cancelled upon emergence, and Remington has issued new shares of common stock and, in some cases, warrants, to the holders of its previously outstanding funded debt in return for their allowed claims against Remington.
The term of Remington’s previous board of directors also expired upon emergence.
The board of directors for the reorganized company include term loan directors Alex Zyngier, George Wurtz, G.M. McCarroll, Gene Davis, as well as third lien notes directors Ron Coburn and Ken D'Arcy. According to court filings, 52 million shares of capital stock were issued, the vast majority of which are common stock.