Remington Seeking DIP Financing to File for Chapter 11 Bankruptcy

[hunterspirit]

#BlackRifleLivesMatter

[kryl]

How can Reuters be boycotted? This needs to be done. It sounds worse than Dick's.

[JohnS624]

Reuters is a news service. The only way to "boycott" them is to not read articles with their byline and that won't do any good because they won't even know.

[kryl]

Reuters is a news service. The only way to "boycott" them is to not read articles with their byline and that won't do any good because they won't even know.

That's what I was thinking. I suppose it might help if one doesn't click and open links to their articles but most of the time I find the whole article is there already.

[10x25mm]

Will it work? A lot of these bankruptcy plans are overly optimistic.

https://www.reuters.com/article/us-r...-idUSKBN1I332W

U.S. judge approves gun maker Remington's bankruptcy plan
Jessica DiNapoli - May 2, 2018 / 6:25 PM / Updated 41 minutes ago

NEW YORK (Reuters) - Weapons manufacturer Remington Outdoor Company Inc won approval for its bankruptcy plan on Wednesday, paving the way for the company to slash debt, boost its cash position and better weather the uncertain climate for firearms in the United States.

Remington filed for bankruptcy in March with a deal in hand to cut its debt by about $775 million, a little more than one month after a school shooting in Parkland, Florida.

The shooting sparked protests and a wave of retailers and corporations to limit sales and transactions relating to firearms. Mass discounter Walmart Inc (WMT.N), which Remington is reliant on for sales, said it would stop selling guns to people under 21 years old.

Remington will exit bankruptcy as soon as this month, with some of its creditors, including JPMorgan Chase & Co(JPM.N) and Franklin Advisors, taking ownership stakes in the company in exchange for forgiving debt. Cerberus Capital Management L.P., Remington’s current private equity owner, will give up its equity in the restructuring.

The company confirmed in a statement that its expects to emerge from bankruptcy before the end of May.

Remington will then have a new Asset Based Loan (ABL) facility of $193 million, the proceeds of which will refinance the existing ABL facility in full.

“I’m satisfied there’s sufficient creditor support to win confirmation,” Judge Brendan Shannon said in U.S. Bankruptcy Court for the District of Delaware. Remington filed a so-called pre-packaged bankruptcy, meaning it had largely won the support of its creditors before it filed in court.

Remington’s creditor committee, composed of a representative for its pension and plaintiffs in cases against the company for gun injuries and deaths, supported the bankruptcy plan, an attorney for the group told Shannon.

“I want to especially thank our dedicated employees spread across the United States that have remained focused on Remington throughout this process” said Chief Executive Anthony Acitelli.

The company’s bankruptcy plan allows for lawsuits against it to continue, including one filed by the families of the victims of the Sandy Hook, Connecticut, school shooting. One of its rifles was used in the 2012 shooting......

[10x25mm]

Reuters is trying to screw up Remington's exit from bankruptcy. You can bet that the 'Masters of the Universe' on Wall Street are behind this effort:

https://www.reuters.com/article/us-b...-idUSKBN1I70AE

Bank of America's loan to Remington tests its firearms pledge
Tom Hals, Jessica DiNapoli - May 6, 2018 / 7:08 AM

WILMINGTON, Del./NEW YORK (Reuters) - Bank of America Corp is preparing to provide critical financing to Remington Outdoor Co, which makes assault-type rifles, just weeks after the U.S. bank said it would stop financing “military-style” firearms for civilians.

The bank is contributing $43.2 million to a $193 million lending package funded by seven banks, according to court documents, which will help put Remington back on stable footing as it emerges from bankruptcy later this month into an uncertain environment for gun makers.

The package replaces a similar credit facility the banks committed to providing Remington. Both were agreed in late March, before Bank of America, the second-largest U.S. bank by assets, changed its policy to stop financing companies that make military-style guns for civilian use.

Anne Finucane, Bank of America’s vice chair, said in April that the bank had decided on its pledge to help reduce mass shootings, saying in an interview with Bloomberg TV that “it is not our intent to underwrite or finance military-style firearms on a go-forward basis.”

The comment came weeks after a school shooting in Parkland, Florida, triggered a new movement for gun control, led in part by student survivors, increasing pressure on U.S. companies to seek to distance themselves from the firearms industry.

Finucane in the Bloomberg TV interview said that Bank of America was in discussions with its gun-manufacturing clients following the change, but did not give details. She did not mention Remington.

Bank of America’s plans to go ahead with the credit facility following its change of policy in April have not previously been reported.

Bank of America said it does not comment on client matters.

Representatives for Remington and Cerberus Capital Management L.P., Remington’s private equity owner, did not immediately respond to requests for comment. Cerberus will give up its equity stake in Remington under the weapons maker’s bankruptcy plan.

According to a review of bankruptcy court documents and interviews with restructuring experts, Bank of America’s agreement with Remington allows it to back out and find another lender to cover its commitment.

But withdrawing from the deal would hurt the bank’s reputation for standing by its lending agreements and could undermine Remington’s survival, according to one person familiar with the bank’s thinking.

Noting that the credit facility is part of a court-supervised bankruptcy, the source said that if the bank were to pull out of the deal it could expose itself to lawsuits and potential damages.

Remington makes the Bushmaster assault-style rifle, including the one used in the Sandy Hook school shooting in Connecticut in 2012 that killed 20 children and six adults.

At Bank of America’s annual shareholder meeting in April, Chairman and Chief Executive Brian Moynihan said the change of policy toward some gun makers was prompted in part because more than 150 Bank of America employees “directly lost a relative in the shootings in the last couple years.”

Moynihan was responding to conservative activist and shareholder Justin Danhof, who said at the meeting that the bank has an obligation to its investors to make profitable loans.

“The company is willfully giving up money,” Danhof said of the guns pledge.

Remington has been a client of Bank of America and the six other lenders providing the credit facility since at least 2012, according to court records.

For the new facility, Wells Fargo & Co and Regions Bank are each providing $43.2 million, while Branch Banking and Trust Co, Synovus Bank, Fifth Third Bank and Deutsche Bank are providing smaller amounts.

Wells Fargo has said it believes the government should set gun policy, not companies through their credit.

The other banks declined to comment or did not respond to requests for comment.

In the weeks leading up to Remington’s bankruptcy, 30 other potential lenders turned down requests for help from Remington’s financial adviser, many of them citing firearms as the reason, according to court documents.

One corporate restructuring specialist suggested Bank of America could have used the new credit facility as leverage to demand that Remington stop making assault-style rifles.

“It’s perfectly reasonable for them to say to any borrower, ‘We’re happy to lend to you if you don’t make military-style assault weapons,’” said Ted Gavin of the Gavin/Solmonese LLC restructuring advisory firm. “The lender has all the power.”

Call it Operation Chokepoint 2.0 or a corporate embargo, it is now clear that the firearms community is viewed as a leper colony by Wall Street.

[Mkc451]

Reuters is trying to screw up Remington's exit from bankruptcy. You can bet that the 'Masters of the Universe' on Wall Street are behind this effort:

https://www.reuters.com/article/us-b...-idUSKBN1I70AE



Call it Operation Chokepoint 2.0 or a corporate embargo, it is now clear that the firearms community is viewed as a leper colony by Wall Street.

That's because they're not making big cash right now like they were over the last few years. If they were still raking in the cash you can be sure Wall Street wouldn't be interested in anything but keeping them happy. That's all we have to do to fix this trend is get the firearms industry back making big money. Might be a downside in electing Trump in this case Hillary would have sold a lot of firearms.

Sent from my XT1575 using Tapatalk

[10x25mm]

The anti-gun finks at Think Progress sadly report that Bank of America did not welch on their Remington bankruptcy financing commitment:

https://thinkprogress.org/bank-of-am...-c1b12bde2192/

Bank of America promises Remington will be last semi-automatic gunmaker to get bailed out by bank
The banking behemoth said is bankruptcy financing was in the works before it announced its new policy on military-style firearms.
Josh Israel - May 10, 2018, 12:08 pm

Amid widespread criticism for seemingly violating its pledge to stop financing companies that manufacturer military-style firearms for non-military and non-law enforcement use, Bank of America released a statement on Thursday saying that its commitment to finance the bankruptcy of Remington does not violate this pledge. According to the company, the decision preceded its pledge.

In response to our pressure, @BankofAmerica has just issued a statement explaining its decision to provide critical financing to gun-maker @RemingtonArms, the company responsible for making assault rifle that killed 20 children & 6 adults in the Sandy Hook school shooting 1/ pic.twitter.com/WlTsQBPJAK

— igorvolsky (@igorvolsky) May 10, 2018

The statement, attributed to the bank’s vice chair Anne Finucane, noted that “[t]he Remington bankruptcy financing was in the works for some months and occurred before our current policy was in place. Remington is aware of the policy that we subsequently announced, and that policy will dictate our future actions after the bankruptcy proceedings conclude.”

“[W]e are not changing our policy to end the financing of the manufacture of the military style firearms,” she continued. “We believe these firearms have had an outsized role in the mass shootings that have devastated so many of the communities that we serve.”

Remington was the manufacturer of the Bushmaster AR-15 semi-automatic rifle used in the deadly 2012 mass shooting at Sandy Hook Elementary School. The company filed for Chapter 11 bankruptcy protection in March and is still facing an ongoing lawsuit for alleged “negligent entrustment” for its role in the 2012 massacre.

[kryl]

The anti-gun finks at Think Progress sadly report that Bank of America did not welch on their Remington bankruptcy financing commitment:

https://thinkprogress.org/bank-of-am...-c1b12bde2192/

Where do I find get a full list so I can cancel their credit cards? I will start with Bank of America.