by plant_one » Mon Feb 12, 2018 9:57 am
ive been thinking about this on and off for a couple days... and i'm thinkg theres more to this than just a simple bankruptcy due to Q/C or whatever perceived issues we see on the surface.
Cerberus management isnt a dumb company. those folks are some financial wizards. and you dont make money on that kind of level by destroying your company's. you do it by capital investment, debt management, and profitability. you get those 3 things in line and THEN you sell the company and make hundreds and hundreds of millions of dollars.
i almost wonder if this isnt just one small part of the bigger - long term - plan for Remington/Freedom Group as a whole - think like the GM reorganization/bailout/bankruptcy process a couple years back.
build the new plant down south and rename the company, move most of the stuff out of new york. blame it on the gun regulations. now you have two company's operating.
Illin is now totally unprofitable. with the election going the way it did, the gun market is flooded so prices have softened quite a bit. do some accounting magic, make the numbers look even worse in new york.
now they have an excuse to take a bath on the Illin facility, move the rest of the production down south, load the old company up with all the debt, and then wash much of it in the bankruptcy and liquidation of the old facility.
a friend on another forum also noted - the bankruptcy will allow they to either settle cheaper, or even eliminate some of the lawsuits that are currently in place over the trigger stuff too.
now they can move forward with this new high tech thing down south without the anchor of their historical debt load or NYS regulations holding them back and come out of the bankruptcy with a new leaner, meaner, on their game company going forward into the future - which is then ripe in the current regulatory and tax market for a sale at a astronomical profit in the next 5-7 years...
just thinking out loud...