Remington files for chapter 11 to reorganize business.
Firearm manufacturer Remington Outdoor Company filed for chapter 11 after continued financial stresses. The company is headquartered in Madison, N.C., with main production facilities in Ilion, N.Y., and Huntsville, Ala., and delivers products to over 50 countries.
Despite the strength of Remington’s brands, the company faced difficulty in meeting benchmarks in connection with the ABL facility and its borrowing capacity. The company began exploring options to address its capital structure including a restructuring of the business or a sale of the company’s assets in chapter 11. Ultimately, Remington negotiated a Restructuring Support Agreement (RSA) with certain term loan lenders and noteholders that would, if approved, would reduce total debt by over $600 million by giving the lenders 82.5% of the restructured company and the noteholders the remaining 17.5%.
The company had roughly $900 million of funded debt as of the company’s filing and an estimated $55 million of unsecured trade claims.
Read CFO Stephen P. Jackson Jr.’s declaration in support of the first day motions here.
View the chapter 11 petition here.
Winn Dixie parent to close some grocery stores and restructure the remaining.
Parent of Winn-Dixie grocery store chain, Southeastern Grocers, filed for chapter 11 to restructure the company. The company will close 94 stores and continue to operate the 580 remaining stores.
The company entered chapter 11 with a prepackaged plan that garnished overwhelming support from the unsecured noteholders and equity holders. In a nutshell, the plan reduces the asset-based loan facility and outstanding unsecured notes by $500 million and annual debt payments by $40 million. Holders of unsecured notes will receive new stock in the reorganized company, and the company will enter into a new $525 million exit facility. Total funded debt will drop from to $741 million from $1.33 billion, and trade claims will be paid in full.
As of the filing, the company lists between $1 billion and $10 billion of assets and liabilities.
Read CFO Brian P. Carney’s declaration in support of the first day motions here.
View the chapter 11 petition here.
Auto lender falls on hard times after Hurricane Irma.
Subprime auto lender Summit Financial Corp. filed for chapter 11, blaming Hurricane Irma. The company said that following Hurricane Irma there were a large number of defaults on retail financing contracts and as a result Summit Financial defaulted to its secured lenders.
The company’s debt totals about $150 million and comprises $77 million due to Bank of America, $33 million to BMO Harris Bank and millions owned to another 100 to 200 unsecured creditors.
At the time of the filing the total assets were listed between $100 million and $500 million.
Read VP David Wheeler’s declaration in support of the first day motions here.
View the chapter 11 petition here.
