Remington Outdoor Company’s reorganization plan was approved by federal court Judge Brendan Shannon and should be complete by month’s end, the company announced this week.
The gunmaker pursued Chapter 11 bankruptcy protections in late March.
— AmmoSeek.com (@AmmoSeek) May 4, 2018
Remington’s reorganization plan will erase more than $775 million of the company’s $1.3 billion debt.
The company will also get close to $350 million in new financing and loans.
Remington’s reorganization plan received 98-percent approval by creditors.
Remington Chief Executive Anthony Acitelli called the announcement a “milestone,” as it had the support of “customers, suppliers, creditors and owner,” Guns.com reported.
The new plan will reportedly give ownership of the company to investment banks such as JP Morgan and Franklin Resources. It would transfer ownership from Cerberus Capital, through ROC, formerly Freedom Group.
Term loan lenders will receive an 82.5-percent stake in the reorganized company, and third-lien note holders will take a 17.5-percent stake and a $39.3 million cash distribution under the plan, the Wall Street Journal reported.
The Securities and Exchange Commission (SEC) opposed the plan, citing concerns that it could protect responsible third parties from litigation.
Even so, the bulk of voting members elected to approve the plan.
Under the plan, the SEC will still be allowed to exercise regulatory powers.