Remington filing bankrupcy
- Thread starter TheOtherZilla
- Start date
Old news. http://forum.accurateshooter.com/threads/remington-to-file-for-bankruptcy.3945246/
The reason it's in the headlines now is to make it appear that the past weekend's protests are driving firearms companies out of business.
The reason it's in the headlines now is to make it appear that the past weekend's protests are driving firearms companies out of business.
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Looks like that to me too. Toby. Tommy Mc
Perception IS reality vis a vis the media - thus the rehashed news.
Company A pays too much of a premium for company B in an LBO, loads on the debt, builds new plants, moves, mismanages, misunderstands/times the markets/customers, (revenue does not support the debt), sells debt to institutional lenders, takes out a hefty management fee, then defaults. Senior equity holders get X% on the dollar, then rest take a bath. Bankruptcy - the debt is forgiven. presto. a game of chicken with U.S bankruptcy law underpinning it all. What's concerning is a defensive move to stem the possibility of future litigants/tort claims in another class action suit in this industry.
Company A pays too much of a premium for company B in an LBO, loads on the debt, builds new plants, moves, mismanages, misunderstands/times the markets/customers, (revenue does not support the debt), sells debt to institutional lenders, takes out a hefty management fee, then defaults. Senior equity holders get X% on the dollar, then rest take a bath. Bankruptcy - the debt is forgiven. presto. a game of chicken with U.S bankruptcy law underpinning it all. What's concerning is a defensive move to stem the possibility of future litigants/tort claims in another class action suit in this industry.
those guys have one song and they sing it all day, every day. it gets old. It's not really news.
Here you go:
"Hedge fund craters one of America's best known brands - stripped all working capital, saddled with debt, files bankruptcy" Sub-head : C___ Group swings for fence, strikes out, bankrupts team.
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Wow, where did you learn so much about corporate finance?
snert
Silver $$ Contributor
You nailed it. This was obvious when it Rem was taken over what, ten years ago? In fact, insiders predicted it would happen. Anyone paying any attention to the financial statements would see this was coming.
It has nothing to do with AR's, etc. Bandwagon reporting, false connections, assumptions and skewed "news".
Yeah......you may want to invest in a night school business course.
This outfit ran the company responsibly for 10 years, mostly good gun guys, including former VP Dan Quayle, built it up substantially, but likely over expanded with low interest debt.
There were no public equity holders and the equity firm lost theirs, 100%.
Nobody anticipated gun sales across the US to be down 35%-40% with big inventory build, anticipating a Hillory win.
duly noted. no one buys into an investment looking to lose. Still, a shame for Remington. I stand corrected.
snert
Silver $$ Contributor
Pfffft....
I remember the chatter that year at SHOT Show when the sale price of $215 million was announced.
The purchase price was $118 million in cash.
total cost, any way you parse it, was $215 million. You missed the part about taking on their debt...?
Including debt assumption, total was $370 million.
https://sgbonline.com/remington-sold-to-cerberus-for-370-million/
KMart
Gold $$ Contributor
Just saw this this morning. Amazing that they can borrow another $75 mil even though filing for bankruptcy.
https://www.reuters.com/article/us-...3.28.18&utm_term=Editorial - Early Bird Brief
https://www.reuters.com/article/us-...3.28.18&utm_term=Editorial - Early Bird Brief
It’s called “debtor in possession financing.” Pretty common in non-liquidating bankruptcy.
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