Remington Outdoor Co. won court approval of a series of sales that will bring in more than $156 million to its coffers in bankruptcy court amid concerns that the deals will endanger what could be more than $100 million of insurance that could compensate gun victims, WSJ Pro Bankruptcy reported. Judge Clifton Jessup signed off on the sales at a hearing in the U.S. Bankruptcy Court in Decatur, Ala., where the iconic weapons maker filed for chapter 11 protection in July. Deals with buyers including Vista Outdoor Inc. will keep Remington’s weapons and ammunition in production, leaving cash, real estate and insurance in a chapter 11 shell company that will pay off creditors. Whitebox Advisors LLC and Franklin Advisers Inc., two of the company’s largest lenders, are at the front of the line to be paid from the sale of Remington’s businesses. Nine families affected by the 2012 Sandy Hook Elementary School shooting fear they will be too far back in the line to recover damages. The Sandy Hook families have been suing Remington since 2015, accusing the company of running afoul of a Connecticut law punishing improper marketing.
