FYI - Remington has filed Bankrutcy

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raptor
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FYI - Remington has filed Bankrutcy

Post by raptor » Fri Feb 09, 2018 3:18 pm

.DIP (Debtor in Possession) financing is the type of debt a company seeks before bankruptcy. Typically a company arranges for this pre-bankruptcy. They also frequently keep it quiet unless of course they are using this fact as leverage with the creditors as Remington is clearly doing.


https://www.reuters.com/article/us-remi ... SKBN1FT04C
The move comes as Remington reached a forbearance agreement with its creditors this week following a missed coupon payment on its debt, the sources said. The company has been working with investment bank Lazard Ltd (LAZ.N) on options to restructure its $950 million debt pile, Reuters reported last month.

Remington is seeking debtor-in-possession financing that will allow it to fund is operations once it files for bankruptcy, the sources said. The size of the financing and timing of Remington’s bankruptcy plans could not be learned.


What does this mean to you? If you are sending in a firearm for warranty work you may wait a little while to see what exactly they do. If they shut down you have issues getting your firearm back in a timely manner. Likewise if you do business with them you may also want to review their account.

I also suspect that any rebates that have not been paid are likely to also be impacted. That and lower price sales on Remington inventory products may be forthcoming.

The sources asked not to be identified because the deliberations are confidential.
Yeah right. That is why Reuters has an article about it. :roll:
Last edited by raptor on Tue Feb 13, 2018 10:35 am, edited 1 time in total.

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Re: FYI - Remington is Seeking DIP Financing

Post by raptor » Fri Feb 09, 2018 3:29 pm

Apparently Rick beat me to this story.
RickOShea wrote:U.S. gunmaker Remington seeks financing to file for bankruptcy

Remington Outdoor Company Inc, one of the largest U.S. makers of firearms, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, people familiar with the matter said on Thursday.

The move comes as Remington reached a forbearance agreement with its creditors this week following a missed coupon payment on its debt, the sources said. The company has been working with investment bank Lazard Ltd (LAZ.N) on options to restructure its $950 million debt pile, Reuters reported last month.

Remington is seeking debtor-in-possession financing that will allow it to fund is operations once it files for bankruptcy, the sources said. The size of the financing and timing of Remington’s bankruptcy plans could not be learned.
Discussion should take place in this thread:
viewtopic.php?f=107&t=120622&p=2695573#p2695573

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raptor
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Re: FYI - Remington has filed Bankrutcy

Post by raptor » Tue Feb 13, 2018 10:40 am

Remington has filed for bankruptcy protection. It looks like the current owners are doing a swap of equity for debt. So that means the current debtors are going to be the new majority owners.

The firm has ( or had) about $900 mm in debt. With t his now equity for the most part the firm should be able to survive short term...at least until the new owners can find another buyer.

Please discuss this at the previously referenced chat thread.

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