We’re sure you saw the news last week that Remington Arms Co. filed for Chapter 11 bankruptcy reorganization.
But did you know the Alabama gun manufacturer listed the state of Arkansas among the creditors who have the 40 largest unsecured claims and are not company insiders?
Remington, which has a plant near Lonoke, listed the amount of Arkansas’ claim as undetermined for a development agreement with the Arkansas Economic Development Commission.
But ADEC told Whispers that Remington and the AEDC had entered into a $2.5 million Quick Action Closing Fund grant agreement in 2016 that was restructured in connection with a previous bankruptcy in 2018.
“Remington would be obligated to repay certain amounts if it does not retain the requisite number of jobs, but presently no repayments are owed under the agreement,” Chelsea O’Kelley, AEDC’s spokeswoman, said in an email.
She said the company would need to keep 1,204 jobs. “AEDC will continue to monitor the bankruptcy,” she said.
In the initial bankruptcy filing, Remington listed assets and debts of between $100 million and $500 million. It also reports between 1,000 and 5,000 creditors. A more detailed filing will come later.
The company is being represented in the bankruptcy by Derek Meek of the law firm Burr & Forman LLP of Birmingham.
“While we have not yet had a chance to review Remington’s filing, we understand that they have been actively engaging in discussions to sell the business,” O’Kelley said. “We understand this bankruptcy arose in connection with those discussions.
“Overall, we believe the firearms industry is quite strong, especially ammunition manufacturing, which is the product produced at the Remington facility in Lonoke,” she said.