Huntsville takes protective measures in Remington Arms bankruptcy case
Published on August 27, 2020
The Huntsville City Council passed a resolution authorizing Mayor Tommy Battle, the City Attorney and Clerk-Treasurer to take whatever legal actions are needed in the Remington Arms bankruptcy case.
The City of Huntsville entered into a development agreement with Remington Arms in 2014 which contained a package of local incentives. Part of those incentives included the transfer and conveyance of 114.9 acres of property near the airport together with an 843,715-square-foot building. In turn, Remington Arms agreed to invest at least $110,900,000 in the property and create up to 2,000 jobs. Provisions in the development agreement provided protections for the City in the event Remington Arms failed to comply with the terms.
“Bankruptcy proceedings can move swiftly, and we want to be in the position to act in the best interests of Huntsville taxpayers and future economic development,” said Riley. “The resolution allows us to proceed in an expedient manner.”
Remington Arms filed for Chapter 11 bankruptcy protection on July 28. Since that time the City has been working closely with outside legal counsel to represent and protect the City’s interests as a second creditor in preliminary bankruptcy hearings.
The City, in cooperation with Remington, has also been involved in preliminary confidential communication with potential bidders for the Huntsville facility. The City has informed both Remington and the Bankruptcy Court that it objects to any proposed sale of the Huntsville facility that will not result in the payment in full at the sale closing of the City’s full mortgage debt or that is not otherwise acceptable to the City.
“It’s the City’s intent to continue our dialogue with Remington about their efforts to market the Huntsville facility for sale and to preserve the jobs that remain,” said Riley. “We will be at the table with all prospective buyers to ensure the City’s interests are protected.”