Posted on 05/10/2018 12:06:39 PM PDT by Simon Green
Bank of America will join half a dozen other banks in providing a lending package to Remington Outdoor Company as the gun maker prepares to emerge from bankruptcy proceedings.
Although the bank announced last month that it would stop financing companies that make military-style guns for civilian use, the deal was made beforehand, Reuters reported.
BoA is contributing $43.2 million to a $193 million lending package funded by seven banks. The loan will help put Remington back on a stable footing as it re-enters an uncertain environment for gun makers.
BoA chairwoman Anne Finucane said in April that the bank had notified customers that “it’s not our intent to underwrite or finance military-style firearms on a go-forward basis” in an effort to reduce mass shootings.
However, BoA agreed to the deal in late March, shortly after Remington petitioned a federal bankruptcy court for Chapter 11 protections, to replace a similar credit line, according to Reuters. There’s no indication BoA or Remington are ready to cut ties, as doing so would hurt the bank’s reputation and may jeopardize Remington’s future.
Remington expects to emerge from bankruptcy by the end of the month, the company announced last week. The bankruptcy court approved the company’s plan for reorganization, which will cancel more than 4775 million of the company’s $1.3 billion debt load. The plan will transfer ownership from Cerberus Capital to creditors, like JP Morgan and Franklin Resources.
BoA reacted to public pressure in its decision to stop working with makers of AR-style rifles. Demonstrators following February’s school shooting in Parkland, Florida, focused energies on businesses rather than lawmakers, who have year after year been unable to pass gun control legislation.
Not happy with that. BOA will castrate any arms company.
It is good to see that corrupt, anti-American politics is not running all of our banking system.
Yes, probably anti-gun strings attached...
Remington kind of already did that to themselves - what with their Fudd-centric focus and when that started to fail in the marketplace their hastily rushed to market, poor quality modern pistols and overpriced ARs.
In the background of one scene I happened to notice a simple billboard that just said “Bank of America”.
Got me nostalgic. Change was a given, but who would have guessed how things would change, and in such a short time, too?
DMPS, Advanced Armament, Bushmaster, TimberSmith, and Tapco are all Remington Outdoor brands.
“BoA reacted to public pressure in its decision to stop working with makers of AR-style rifles. “
There is bigger public pressure coming from us investors in BoA. I read the riot act to a Merrill Lynch VP yesterday, I called Finucane unfit to head up any financial institution and pointed out the folly of Dick’s Sporting Goods as a disaster they cam emulate. I am starting to organize a movement amongst other investors to get her ousted.
Unless the deal includes wholesale management change at Remington, they’re throwing bad money after good. There’s been more firearms sold in the last nine years than in any other 20-year period in history. If you can’t make a profit selling firearms in that climate, you couldn’t sell lemonade in hell.
There is a great Perry Mason wiki that goes into a lot of details including locations.
Can’tcha just see Hogg having a temper tantrum and holding his breath until he turns blue.
Suck it Hogg!
When money talks, political correctness walks.
Good point.
That R-51 debacle, among others really cost Remington a lot of money and goodwill among its customers.
CC
Exactly what Bankruptcy is for...restructuring
Yeah they will!
I can’t say much for Remington’s weapons but their ammunition is top notch. Their UMC 9mm is outstanding.
Very cool. Thanks for the tip!
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