Exclusive: U.S. gunmaker Remington seeks financing to file for bankruptcy: sources

9 327

(Top rated Breaking Information) – Remington Outside Firm Inc, one of the largest U.S. makers of firearms, has reached out to banking companies and credit score investment money in search of financing that will let it to file for individual bankruptcy, people today familiar with the subject reported on Thursday.

The shift arrives as Remington achieved a forbearance agreement with its lenders this 7 days following a missed coupon payment on its financial debt, the resources said. The enterprise has been performing with financial commitment financial institution Lazard Ltd (LAZ.N) on choices to restructure its $950 million credit card debt pile, Prime Breaking News described past month.

Remington is seeking debtor-in-possession financing that will let it to fund is functions once it documents for individual bankruptcy, the resources mentioned. The dimensions of the financing and timing of Remington’s bankruptcy plans could not be discovered.

Some opportunity financing resources, such as credit history cash and banks, have balked at coming to Remington’s assist since of the name hazard associated with this sort of a transfer, in accordance to the sources.

Remington, which is managed by buyout firm Cerberus Funds Management LP, was deserted by some of Cerberus’ personal fairness fund traders following one of its Bushmaster rifles was utilized in the Sandy Hook elementary university shooting in Connecticut in 2012 that killed 20 kids and 6 adults.

The sources requested not to be recognized simply because the deliberations are confidential. Remington did not reply to quite a few requests for remark. Cerberus declined to comment.

Credit history ranking organizations have warned that Remington’s capital composition is unsustainable given its weak functioning general performance and important volatility in the demand for firearms and ammunition.

Remington’s income have declined in component because of receding fears that guns will turn out to be far more heavily regulated by the U.S. authorities, according to credit history ratings companies. President Donald Trump has said he will “never, at any time infringe on the ideal of the folks to keep and bear arms.”

The Madison, North Carolina-based mostly gun producer faces a maturity of an somewhere around $550 million time period mortgage in 2019. Remington also has $250 million of bonds that appear thanks in 2020 and are buying and selling at a considerable lower price to their encounter worth at all around 16 cents on the greenback, in accordance to Thomson Top rated Breaking Information data, indicating investor problems about reimbursement.

The expression loan maturing up coming 12 months is also buying and selling at a considerable price cut to total benefit, at all around 50 cents on the greenback, the sources mentioned.

Remington’s gross sales plunged 27 % in the first 9 months of 2017, ensuing in a $28 million working reduction.

Reporting by Andrew Berlin in New York and Jessica DiNapoli in Las Vegas Editing by Cynthia Osterman

Our Criteria:The Thomson Leading Breaking Information Rely on Concepts.

Source Source Link
Via Reuters
9 Comments
  1. William Harrington says

    Not only a sad day for the 2nd Amendment, a disaster for the employees. It is my understanding that Remington is located in the Northwest part of New York in more of a suburban/rural area and its closing would be crippling to the area economy.

  2. DAY says

    I love their ammunition for my hand guns. Haven’t needed one of their rifles, so I haven’t purchased one ,,, yet.

  3. Jr says

    Hope they manage to pull out of this mess. They make some of the finest Big Game rifles on the market and at a very competitive price. This means the low income people can afford to own one, as well as those with the 6 figure incomes. I’ve got a model 7400, .270 cal., that in 3 shot sets at 100 yds. 3 were just left and down, 1/4″ off dead center. What is great about it is you can take a quarter and cover all 3 holes. That is consistent every time I go out back to shoot. I also had a model 742 in a 30-06 cal. and it shot within 64ths of the same. Many rifles are much higher and some a little lower, but I’ve never seen for the money, anything to compare to the Remington. Hope President Trump might urge some lenders toward helping them get restructured.

  4. Chris Robinette says

    By all means shut your doors Remington. Then come to Mississippi and open shop!!! Mississippi wants you!!!!!!!!!!!!!

    1. GoldenRudy says

      But for those innocent employees left in the s-hole called New York, that is not a bad idea. Many would probably enjoy good Southern living.

  5. GoldenRudy says

    Connecting the “Bushmaster” rifle to the Sandy Hook shootings of little kids is no different than connecting the “Ford F-150” to any deaths associated with that vehicle. Insane thinking and very dangerous.

  6. John Hyland says

    I suggest the Federal Gov’t. step in and shore up Remington as they have done successfully with auto firms and financial concerns in the past. This venerable guns & ammo. firm is a pillar in the gun industry and should survive even if they only kept making 870 & 1100 model shotguns, which most of us have or had in our lifetimes!

  7. Don Wright says

    Sadly, I used to trust Remington … in the past to produce quality firearms. The last two firearms I purchased required both to be shipped back to the factory for shoddy and imperfect work. It took months to have the first firearm returned and the same for the second. I asked the rep if they ever quality checked what was going out and didn’t get a “direct” response other than “some”. I swore off the brand and everything associated with them. Still, I will miss the “old” Remington if it is to close it’s doors. Maybe, if they survive they can improve the quality of what they sell and actually “give” a damn if it is worth what they charge. I still have a number of Remington firearms … older rifles and shotguns … got rid of both of my later purchases … traded them in at the gun store. My advice, if they manage to stay in business … don’t cut corners … have every rifle, firearm fired prior to delivery and include the spent casings. That way they can insure that the last Remington I bought … that when fired just once, failed to eject the spent casing … defective ejector … didn’t feel to good about that or the way I was treated by them afterwards. In my book they will have a long way to go before they earn they regain our trust. Out with the old and in with the new … from senior management on down … then, maybe they can reestablish some of what they lost.

  8. borvestinkral says

    Enjoyed studying this, very good stuff, thanks. “What the United States does best is to understand itself. What it does worst is understand others.” by Carlos Fuentes.

    http://www.borvestinkral.com/

Leave A Reply

Your email address will not be published.