Later this afternoon, the United States Bankruptcy Court in the Southern District of Florida will hold an Initial Status Conference for a RWC Group, LLC’s Chapter 11 bankruptcy filing. While RWC might not be familiar to you, it’s d/b/a might be: Kalashnikov USA.
Kalashnikov USA’s parent company, RWC Group has filed for Chapter 11 bankruptcy protections.
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While details are sketchy, we can definitely confirm the filing. We’re one of the companies listed in RWC’s creditors. At today’s preliminary session, a bankruptcy referee will decide if it’s appropriate to:
-fix a date to which the Debtor, or trustee if one has been appointed, must assume or
reject executory contracts and unexpired leases,
- set a date by which the Debtor, or trustee must file a disclosure statement and plan (the plan by which they plan to emerge from bankruptcy)
-set a date after which a party in interest other than the Debtor may file a plan
(more on that in a minute)
-set a date by which a proponent of a plan, other than the Debtor must solicit acceptance of such plan,
- fix the stop and format of the notice to be provided regarding the hearing on approval of the disclosure statement, and
- consider whether the hearing on approval of the disclosure statement should be combined with the hearing on confirmation of the plan.
That’s a lot of legalese to say the details of the Chapter 11 filing will determine whether the company is seen by the Court as viable to remain in business in its current state or whether it should be allowed to continue by an interested party. The hearings also allow the creditors to file their objections, or endorsement, of any plan.
Sources outside the company have confirmed that there are “substantive” talks underway with an outside group regarding the acquisition of the company and continuation of the business. We have been unable to determine the name of the company, but the group is a company already in the firearms business, outside the United States.
The whispers about KUSA’s “challenges” started filtering out weeks ago. Retailers tell us they’re out of stock, the phones aren’t being answered (we can attest to that), and former employees tell us the company is, essentially, shut down.
The filing took many inside the industry by surprise. Although KUSA wasn’t at SHOT Show, the company had been showing new products, from their KR101 to the Micro-9, a 5-inch barreled semi-auto clone of the Russian KP-9 Vityaz. It was reported the Micro-9 would begin being offered into the civilian market after an “overseas contract” was fulfilled.
By most standards, it seemed the company was on solid footing. No definitive word as to what took them to the point of Chapter 11 reorganization.
That’s all we know for certain at this point. But today’s hearing in Fort Lauderdale, Florida, may offer some insight.
As always, we’ll keep you posted.
— Jim Shepherd