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Remington “official” Chapter 11 & Update

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Posted on July 27 2018

 

Remington Arms was founded in 1816 and based in North Carolina, late last night officially filed Chapter 11, Delaware Bankruptcy Court.

Remington manufactures a variety of handguns, rifles and shotguns. As well as various ammunition. The Company announced they will continue to “operate” during Chapter 11 Protection. This will allow Remington time to establish a reorganization plan, and to pay off company creditors.

However Cerberus Capital Management, a private equity group is now the majority share owner of Remington. Cerberus has indicated that post Post Chapter 11 their intention is to sell Remington’s assest post-Bankruptcy discharge. Truly an end of an era.

Below is Remington’s Material Definitive Agreement – Amendment (MDA-A), March 23 and yes technically Remington had to wait until March 25, 2018 at 11:59PM before they could file in the Deleware Bankruptcy Court.

See link to Remington’s MDA-A version 5 below:

Remington Investors MDA-A

 

Remington Original Comprehensive Report, February 2018, pre-petition Bankruptcy

 

ROC Report Feb 2018 prepetition Chapter 11

 

 

 

Delaware Bankruptcy Court

Remington Case 1:18-bk-10687

 

Open Source Link to Remington’s Bankruptcy Filing Below.

Remington Chapter 11 Filing

I ran a docket report as of yet Remington hasn’t submitted its “plan” but then again it’s still early and they’ve already entered 25 Documents. So it’s just a matter of time.

 

See docket report 

July 16 2018

Order Remington et al

discharged from Chapter 11

 

 

Frankly the FASTEST Bankruptcy in recent memory <70 days from pre-petition, to post petition to discharge. There isn’t an open source link to Remington’s Order & Final Decree but this is the PACER link to the July 16 Order.

 

To summarize Remington’s rationale for filing Chapter 11, they facing an onslaught of numerous case action lawsuits. When an organization is in bankruptcy there’s a protection that’s afforded to the petitioner, particularly if it’s a Volunary Bankruptcy. So the timing of the 8thCCOAs is oddly critical and frankly a healthy dose of karma. But the Remington “trigger”class action by far was the figurative straw that broke the camel’s back. The Trigger Class Action encompassed nearly 7.5 million Remington Long Guns.

FWIW this link will take you to the “class action 2017 settlement”, found here.

The 2017 Settlement reads in part:

Plaintiffs’ application for fees and expenses in the amount of $12.5 million is approved; 


(11) Plaintiffs’ request for costs and expenses in the amount of $474,892.75 is approved, and that amount shall be subtracted from the $12.5 million awarded to class counsel; 


(12) Plaintiffs’ request for service awards to class representatives in the
amount of $2,500 each is granted; 


(13) Defendants shall publish a copy of this Order on the Settlement Website;


(14) Pursuant to the terms of the Fourth Amended Settlement Agreement, the Court retains jurisdiction over the parties, including the settlement classes, in matters relating to the administration, consummation, validity, enforcement, and interpretation of the settlement agreement...

 

 

Remington naturally appealed the 2017 Final Order & Settlement. Which is ironic because when this issue was litigated in 2013 Remington voluntary sent a recall notice to customersers, see 2014 Official Remington Recall Notice, here.

 Shortly after the entry of the Final & Approved Settlement Remington filed its notice of Appeal. Link for here.

 

 

🔥July 18th Eighth CCoA🔥

And I guess right about now Remington truly wishes they were still in bankruptcy given that the Eight Circuit Court of Appeals AFFIRMED the District Court’s ruling regarding a class action lawsuit against Remington et al.

 

 Ian Pollard and others brought a class action complaint against Remington Arms Company, LLC; Sporting Goods Properties, Inc.; and E.I. Du Pont Nemours and Company (collectively “Remington”), in which they alleged certain Remington rifles were susceptible to unintentional firing without a trigger pull. Among other things, the class members sought to require Remington to repair or replace their firearms. After extensive settlement negotiations, the parties finalized a nationwide settlement. Appellants Lewis M. Frost and Richard L. Denney (“objectors”) appeal the district court’s order granting final approval of the class action settlement agreement.

On appeal, the objectors argue that the district court abused its discretion by approving a class action settlement that utilized an inadequate notice plan and one that provided inadequate relief to class members. We find no error and affirm. (emphasis added)

 

 

To read the 8thCCOAs Order, link found here. The Appeal Court found the District Court:

On the first Claim the Appeals Court stated:

“the notice plan was adequate and satisfied the methods and mechanisms for disseminating notice set forth in Rule 23 of the Federal Rules of Civil Procedure.”

 

On the second claim:

‘[t]he record makes plain that the settlement agreement was reached following meaningful discovery and investigation by class counsel and arm’s length negotiations between the parties.”

 

And ultimate the Eigth Circuit Court of Appeals concluded:

The record makes plain that the settlement agreement was reached following meaningful discovery and investigation by class counsel and arm’s length negotiations between the parties. We conclude that the settlement was fair, reasonable, and adequate, and we affirm the district court’s order approving the settlement. (emphasis added)

 

To read more about the Remington PRODUCTS:

Remington Arms Company, LLC (“Remington”) is voluntarily recalling Remington Model 700TM and Model SevenTM rifles with X-Mark Pro® (“XMP®”) triggers, manufactured from May 1, 2006 to April 9, 2014. Found here.

 

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