Remington Outdoor disclosure statement OK’d; plan hearing March 8

By Sarah Lizee

Olympia, Wash., Feb. 3 – Remington Outdoor Co., Inc., its official committee of unsecured creditors and its exit term loan lenders’ disclosure statement for a Chapter 11 plan was conditionally approved Tuesday by the U.S. Bankruptcy Court for the Northern District of Alabama.

A combined hearing on final approval of the statement and confirmation of the plan is scheduled for March 8.

According to the disclosure statement, the purpose of the plan is to distribute the net proceeds from the sales of the debtors’ businesses, provide for the termination of the debtors’ remaining business operations, liquidate the debtors’ remaining assets and wind down the debtors’ affairs.

Holders of priority non-tax claims will be paid in full in cash.

Holders of other secured claims will receive payment in full in cash or receive the collateral securing their claims.

Holders of exit term loan claims will receive their pro rata share of cash collateral proceeds remaining after funding other distributions. The collateral proceeds will include the net cash proceeds of the collateral securing the exit term loan claims, and the excess amount of any reserves under the plan remaining after the satisfaction in full of the claims for which those reserves were established.

Holders of Huntsville note claims will receive payment in full in cash, receive the collateral securing the claims, or be satisfied by the assumption and assignment of the Huntsville note by any buyer of the Huntsville property.

Holders of general unsecured claims will receive their pro rata share of the creditor trust interests, provided that the first $894,451 of the unsecured claims distribution in respect of the creditor trust interests will be distributed pro rata to holders of allowed general unsecured claims other than holders of the exit term loan deficiency claims.

Holders of tort convenience class claims will receive cash equal to 2% of the allowed amount of their claims, not to collectively exceed $20,000 per incident or occurrence.

Holders of tort claims will receive beneficial interests in the tort claim sub-trust, reflecting a right to receive their respective share of the proceeds of the general liability assets providing coverage applicable to the tort claims.

Intercompany claims will be canceled with no distribution.

Holders of interests will receive no distribution.

Remington is a Huntsville, Ala.-based maker of guns and ammunition. The company filed bankruptcy on July 27, 2020 under Chapter 11 case number 20-81688.

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