Remington Outdoor Co. Inc. has secured a $65 million initial bid for its ammunition business, setting the floor for bankruptcy auction to take place later this month.
Columbia, S.C.-based private equity firm JJE Capital Holdings LLC submitted the “stalking horse” bid, according to a notice Remington filed Tuesday in the U.S. Bankruptcy Court for the Northern District of Alabama.
Remington also said it reserved its right to give notice of a stalking horse bid for its firearms business.
Remington filed Chapter 11 July 27, just over two years after emerging from a 2018 bankruptcy that wiped $775 million of red ink from the company’s ledger. The company filed the second bankruptcy case with an intent to sell its assets.
The bankruptcy has faced some opposition, particularly from a group of families suing the arms maker for losses related to the 2012 Sandy Hook Elementary School shooting that killed 20 children and six adults.
The Sandy Hook Families said in a Sept. 1 filing that a sale free and clear of liability from their claims isn’t justified, and that Remington can successfully reorganize in light of a surge in business in 2020. The proposed sale is designed to repay only secured lenders and wash the assets of tort liabilities, they said.
Earlier in the case, the group complained of being left off Remington’s list of its largest unsecured creditors, despite being included in the company’s prior bankruptcy.
The United Mine Workers filed a separate objection Sept. 1, asserting that the proposed sale is a bad faith attempt to decimate the union’s collective bargaining agreement and retiree benefits plan without the negotiations required under the bankruptcy code.
Judge Clifton R. Jessup Jr. rejected both objections and approved Remington’s proposed bidding procedures Aug. 20.
The judge will consider approving the sale to the winning bidder or bidders at a hearing Sept. 23.
The case is In re Remington Outdoor Co., Inc., Bankr. N.D. Ala., No. 20-81688, notice filed 9/8/20.