Remington Outdoor Company’s reorganization device was approved by federal court Judge Brendan Shannon and should be total by month’s discontinuance, the company announced this week.
The gunmaker pursued Chapter 11 bankruptcy protections in late March. Remington’s reorganization device will erase more than $775 million of the company’s $1.3 billion debt. The company will also salvage close to $350 million in recent financing and loans.
Remington’s reorganization device 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 recent device 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, previously Freedom Group.
Term loan lenders will receive an 82.5-percent stake in the reorganized company, and third-lien note holders will prefer a 17.5-percent stake and a $39.3 million cash distribution under the device, the Wall Street Journal reported.
The Securities and Exchange Commission (SEC) opposed the device, citing concerns that it could protect responsible third parties from litigation.
Even so, the bulk of voting members elected to approve the device.
Under the device, the SEC will still be allowed to exercise regulatory powers.
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