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https://www.reuters.com/article/us-...ile-for-bankruptcy-sources-idUSKBN1FT04C

Exclusive: U.S. gunmaker Remington seeks financing to file for bankruptcy: sources
Andrew Berlin, Jessica DiNapoli

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(Reuters) - 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.
FILE PHOTO: People look over Remington rifles and shotguns during the annual SHOT (Shooting, Hunting, Outdoor Trade) Show in Las Vegas January 15, 2013. REUTERS/Las Vegas Sun/Steve Marcus

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.

Some potential financing sources, including credit funds and banks, have balked at coming to Remington’s aid because of the reputation risk associated with such a move, according to the sources.

Remington, which is controlled by buyout firm Cerberus Capital Management LP, was abandoned by some of Cerberus’ private equity fund investors after one of its Bushmaster rifles was used in the Sandy Hook elementary school shooting in Connecticut in 2012 that killed 20 children and six adults.

The sources asked not to be identified because the deliberations are confidential. Remington did not respond to several requests for comment. Cerberus declined to comment.

Credit rating agencies have warned that Remington’s capital structure is unsustainable given its weak operating performance and significant volatility in the demand for firearms and ammunition.
Lazard Ltd54.23
LAZ.NNew York Stock Exchange
-2.91(-5.09%)
LAZ.N

LAZ.N

Remington’s sales have declined in part because of receding fears that guns will become more heavily regulated by the U.S. government, according to credit ratings agencies. President Donald Trump has said he will “never, ever infringe on the right of the people to keep and bear arms.”

The Madison, North Carolina-based gun manufacturer faces a maturity of an approximately $550 million term loan in 2019. Remington also has $250 million of bonds that come due in 2020 and are trading at a significant discount to their face value at around 16 cents on the dollar, according to Thomson Reuters data, indicating investor concerns about repayment.

The term loan maturing next year is also trading at a significant discount to full value, at around 50 cents on the dollar, the sources said.

Remington’s sales plunged 27 percent in the first nine months of 2017, resulting in a $28 million operating loss.

Reporting by Andrew Berlin in New York and Jessica DiNapoli in Las Vegas; Editing by Cynthia Osterman
Our Standards:The Thomson Reuters Trust Principles.

Maybe someone that actually enjoys firearms and hunting will acquire them. Cerberus or whatever has been a blight on the company from the start.

There are a lot of ways to fail in business.
Making junk is a great way to start. What a shame to see a proud old American Co. go down this path.

Too many MBA’s, not enough gun looneys

Calling what they make "junk" is really being hard on junk it self. Their quality could not be worse, I wouldn't be proud enough to leave one of their rifles in my barn.

Apparently borrowing a BILLION dollars might be another way!

Or build Model 70s...

It was inevitable. Cerebus allowed their investors to pull out when they couldn't get a quick flip, then saddled the company with debt in anticipation of big sales after Hillary got elected. That didn't happen and their cash flow can't meet their debt service. Hopefully somebody buys them and moves them to Wyoming.

I am not too sure I would miss anything built by remington, but I hope Marlin emerges out of this.

Who else did they gobble up?

Dang. I like Remington stuff.

They managed to obama the 870 up for God's sake, moving production to schitt hole countries and then expecting quality production is only a good idea in a bean counters eye.

Cerberus has been a blight on any company they have acquired. Corporate raiders with no intrest in the underlying product or service. Those actively managing Remington have been asleep at the wheel.

What manufacturing did Remington move to a chit-hole country?

Didn't they just purchase Barnes Bullets?

Dakota, Barnes, Bushmaster, DPMS and a few more.

The U.S.

That could suck

$350 ADL's with $1000 worth if barrel, stock and trigger still a good way to go. Sometimes you get lucky and font even have to have the barrel.

I'm still waiting for my $100 rebate on their neat RM 380 pistol.