November 19, 2020 – The Court hearing the Remington Outdoor Company case has extended the periods during which the Debtors have an exclusive right to file a Chapter 11 Plan, and solicit acceptances thereof, through and including January 25, 2021 and March 26, 2021, respectively [Docket No. 1151]. Absent the requested relief, the Plan filing and solicitation dates are scheduled to expire on November 24, 2020 and January 25, 2021, respectively.

For these Debtors, who have concluded multiple asset sales and are in the various stages in respect of further already auctioned or to be sold assets, "meaningful plan discussions could not take place until after the sale process unfolded." 

The Debtors requesting motion summed up the status of asset sales as: "After considering the evidence presented by the Debtors, the Court approved the sales. Since then, the Debtors have closed three of the main transactions (Remington ammunition, Barnes Bullets and Remington firearms), as well as two of the intellectual property agreements. Total proceeds realized to date approximate $127 million. The remaining two sales are anticipated to close by mid-November. The Debtors are also in the process of engaging a broker to market their remaining assets, including real property in Huntsville, Alabama and Madison, North Carolina, in addition to pursuing sales of other assets. Thus far, the process has put the Debtors in a favorable position to be able to propose a feasible plan."

Further Background

As previously reported in respect of the Debtors’ requesting motion [Docket No. 1040], “During the first stage of these Chapter 11 Cases, the Debtors have focused on the sale of their assets, which has been successful by any objective measurement. The Debtors filed their petitions without a stalking horse or debtor in possession financing after their pre-petition stalking horse failed to proceed. Accordingly, the Debtors’ immediate focus was on securing sufficient financing through cash collateral arrangements and establishing a prompt sale process to unlock the value of their assets. With the support of the Creditors’ Committee and the Secured Creditors, the Debtors sought a sixty-day sale process as an extension of its established pre-petition sales efforts led by Ducera. The Court set an Auction Date of September 17 and the Debtors continued to engage with multiple independent bidders.

Just weeks before the Auction, the Debtors were able to secure a stalking horse bid for their ammunition business and intellectual property for $65 million. This served as the springboard for an active ‘virtual’ auction involving over a dozen bidders that took place over eight days from September 17 through September 24th. The final results for the main auction and intellectual property auction raised approximately $160 million in proceeds and left valuable assets with the estates, including real estate and accounts receivable. The sales included four primary auction sales agreements and five back-up bidders, as well as three intellectual property buyers. The Debtors promptly documented these separate agreements.

After considering the evidence presented by the Debtors, the Court approved the sales. Since then, the Debtors have closed three of the main transactions (Remington ammunition, Barnes Bullets and Remington firearms), as well as two of the intellectual property agreements. Total proceeds realized to date approximate $127 million. The remaining two sales are anticipated to close by mid-November. The Debtors are also in the process of engaging a broker to market their remaining assets, including real property in Huntsville, Alabama and Madison, North Carolina, in addition to pursuing sales of other assets. Thus far, the process has put the Debtors in a favorable position to be able to propose a feasible plan.

As the Debtors move into the next stage of these Chapter 11 Cases, they have recently filed a motion to set a claims bar date and are commencing discussions with stakeholders as to the potential terms for a chapter 11 plan. Given the uncertainty concerning the value of the Debtors’ assets at the commencement of the cases, meaningful plan discussions could not take place until after the sale process unfolded. Accordingly, the Debtors hereby seek additional time to facilitate those discussions.”

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