U.S. judge approves gun maker Remington’s bankruptcy plan

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. FILE PHOTO: A man walks with his Remington 870 Express 12 gauge shotgun during a pro-gun and Second Amendment protest outside the Arizona State Capitol in Phoenix, Arizona, U.S., January 19, 2013. REUTERS/Joshua Lott/File Photo 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 […]

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