Seamaster31
Member
- Joined
- Feb 19, 2019
- Messages
- 171
I want to take a quick shot at providing some input into the internet discussion of bankruptcy. It has been many years since I darkened the doorway of a law school, and our firm has been involved in bankruptcy matters for corporate clients.
The outcome of the Remington situation is anybody's guess, and the facts are only known to the people directly involved. This is a Chapter 11 filing which provides temporary relief from creditors and a chance at reorganization. The plan appears to be a sale of the the assets of the entire operating company, it's component parts, and the related operating units. There may well be a different buyer for the ammunition components (Remington, Barnes, etc.) than the firearms components. At this point this is not a Chapter 7 dissolution.
There has not been a preferred initial bidder (often called a "stalking horse") identified yet to my knowledge. Hopefully there will be a few qualified bidders and the results will certainly be interesting.
The folks in my firm and others well versed in this type of event believe that the impending civil suits by the Sandy Hook group are a major driver in the forthcoming decisions. Assuming the court gives it's blessing to the sales, after the listed creditors are satisfied there may be an empty bucket left for the Sandy Hook plaintiffs if they continue and prevail. The liabilities or potential liabilities of the current corporation will not follow the sold assets to their new owners.
Selling the plants, equipment, and intellectual property (patents, trademarks, etc) to new operating companies does not necessarily mean that the Remington name and the associated products will be changed or discontinued. It is quite possible that the same products will be manufactured and marketed just as before, but with different stockholders.
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I am not involved in this matter and therefore have no insider information. Any guess as to the outcome by me would be a wild guess. I suspect that is the same as most of the fellows on internet boards.
The outcome of the Remington situation is anybody's guess, and the facts are only known to the people directly involved. This is a Chapter 11 filing which provides temporary relief from creditors and a chance at reorganization. The plan appears to be a sale of the the assets of the entire operating company, it's component parts, and the related operating units. There may well be a different buyer for the ammunition components (Remington, Barnes, etc.) than the firearms components. At this point this is not a Chapter 7 dissolution.
There has not been a preferred initial bidder (often called a "stalking horse") identified yet to my knowledge. Hopefully there will be a few qualified bidders and the results will certainly be interesting.
The folks in my firm and others well versed in this type of event believe that the impending civil suits by the Sandy Hook group are a major driver in the forthcoming decisions. Assuming the court gives it's blessing to the sales, after the listed creditors are satisfied there may be an empty bucket left for the Sandy Hook plaintiffs if they continue and prevail. The liabilities or potential liabilities of the current corporation will not follow the sold assets to their new owners.
Selling the plants, equipment, and intellectual property (patents, trademarks, etc) to new operating companies does not necessarily mean that the Remington name and the associated products will be changed or discontinued. It is quite possible that the same products will be manufactured and marketed just as before, but with different stockholders.
.
I am not involved in this matter and therefore have no insider information. Any guess as to the outcome by me would be a wild guess. I suspect that is the same as most of the fellows on internet boards.