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.
While details are sketchy, we can definitely confirm the filing. We’re one of the companies listed in RWC’s creditor list. 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 a viable entity that can remain in business in its current state or whether it should be allowed to continue to be operated 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 interested company, but it is a company already in the firearms business based outside the United States.
The whispers about KUSA’s “challenges” started filtering out into public view 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 in 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. We have no definitive word as to what took them to the point of filing for Chapter 11 reorganization.
That’s all we know for certain at this point, but today’s hearing in Fort Lauderdale may offer some insight.
As always, we’ll keep you posted.
2 Responses
“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.”
It sure would be interesting if Palmetto State Armory were to be interested in taking them over, seeing how they are ramping up up a 7.62×39 production line tooling sourced from eastern Europe…
“We have been unable to determine the name of the interested company, but it is a company already in the firearms business based outside the United States.”
Drat. (Insert ‘Wacky Racers’ Muttley muttering *here*) 🙁
Maybe they shouldn’t have spent so much money on blown out porn stars.
And PSA taking them over would be the worst outcome. It’s been a decade and they still can’t make a decent AK because they’re cheap and their customers are too.