By Joseph P. Tartaro | Executive Editor
Howell Munitions & Technology in Lewiston, ID, has voluntarily filed to re-organize under Chapter 11 bankruptcy after the company’s founder allegedly wrestled back control of the business from a lender, the Lewiston Tribune reported on June 12.
The company has faced financial challenges that forced reductions in employees and created a conflict with a lender, Zions First National Bank, according to court documents filed in US Bankruptcy Court in Nevada.
The business has about $5.4 million of unsecured claims from its 20 biggest creditors, according to the bankruptcy.
What the bankruptcy means for the business’ employees is not clear. Attempts by the Tribune to reach representatives of Howell Munitions & Technology were not successful.
Zions had no comment because the bank hadn’t had sufficient time to review the documents, said Ali Hardy, a spokeswoman for the bank. But in the bankruptcy filing, a Zions attorney stated the bank will seek to have it dismissed.
The bankruptcy filing by Howell Munitions & Technology explains how the company operates and its version of what led to its problems.
David Howell owns 95 percent of the issued and outstanding shares in Howell Munitions & Technology, which is the sole shareholder in X-Treme Bullets, Clearwater Bullet, Ammo Load Worldwide and Howell Machine.
X-Treme is in Carson City, NV, and Clearwater Bullet is in Lewiston. Both businesses manufacture bullets that are sold wholesale and to online customers.
Ammo Load Worldwide man-ufactures ammoload machines and other machines in Lewiston that are sold to third-party customers. Howell Machine in Lewiston makes parts for those machines and other equipment.
Howell Munitions & Technology owns 100 percent of the membership interests in Freedom Munitions, which sells ammunition.
David Howell owns the majority of the membership interests in Components Exchange and in Lewis-Clark Ammunition Components.
Components Exchange in Peck manufactures and assembles ammunition and sells ammunition and components to wholesale and online customers.
Lewis-Clark Ammunition Components is no longer in business, but owns machinery and equipment.
Howell Munitions & Technology, X-Treme Bullets, Clearwater Bullet, Ammo Load Worldwide, Howell Machine, Freedom Munitions, Lewis-Clark Ammunition Components, Twin River Contract Loading, Big Canyon Environmental and David Howell received a revolving loan and four term loans from Zions First National Bank in November 2014, according to a declaration from David Howell in the bankruptcy filing. Twin River Contract Loading and Big Canyon Environmental are not part of the bankruptcy.
“In 2016, the borrowers failed to comply with certain financial covenants contained in the bank loan agreements,” according to Howell’s declaration. “Moreover, the revolving loan became due on July 26, 2016, and the bank declined to extend the revolving loan. The bank alleges an outstanding balance owed by the borrowers in the approximate amount of $16.7 million.”
In response in 2017, the companies liquidated a significant amount of inventory, “undertook two significant reductions in their workforces” and reduced other operating expenses, according to Howell.
In April, the relationship between the companies and Zions worsened, with Howell stepping aside as president or managing member of the companies and the bank appointment of a chief restructuring officer, according to Howell.
The bank-appointed chief restructuring officer “had no knowledge” of the companies as he closed business operations, terminated employees and pursued the sales of assets, according to Howell.
“By reason of the negligent and ill-advised acts taken by the bank-appointed (chief restructuring officer), substantial damage has been done to the operations” of the companies involved in the bankruptcy, according to Howell.
Just a day before the bankruptcy filing, the companies involved in the bankruptcy “terminated” the bank-appointed chief restructuring officer, according to Howell.
The former senior management was reappointed, led by Howell as president, and the companies involved in the bankruptcy have employed a financial turnaround expert, according to Howell.
Howell stated in court documents that he believes that if the bank-appointed chief restructuring officer had stayed, the company’s “financial affairs … would be impaired greatly, if not destroyed.”
Zions takes issue with what happened, its attorney stated in a court document. “The principal of the debtor, David Howell, used unauthorized force to displace a pre-petition chief restructuring officer from the principal place of business for this debtor’s business enterprise in Lewiston … and turned around and filed a series of bankruptcy cases … in Nevada without legal authority to do so.”
FBI Contract Awarded
Winchester Ammunition was recently awarded a contract from the FBI for its Duty and Frangible training 9MM pistol ammunition. Winchester also received a contract from the FBI as the primary source for .40 S&W pistol ammunition in fall 2017.
Winchester said in a press release that the 147-gr. bonded jacketed hollowpoint (JHP) duty cartridge selected by the FBI is designed with patented technology that utilizes a reverse-jacketed, bonded bullet that can penetrate a wide variety of intermediate barriers while maintaining very consistent target penetration and reliable expansion.
“The nickel-plated cartridge prevents corrosion and ensures smooth feeding and extraction. Flash suppressed powder is used in this cartridge to maintain an agent’s night vision and meet the FBI’s stringent darkened range evaluation.”
Youth Clays Programs
Hodgdon Powders and the Scholastic Clay Target Program (SCTP) are teaming up again for 2018 according to the principals at the shooting program and the powder company.
Hodgdon Powders has been a long-time sponsor of the SCTP and continues to do so.
“Hodgdon is proud to partner with the Scholastic Clay Target Program again for 2018,” said Chris Hodgdon, Sales/Public Relations manager for Hodgdon Powder. “SCTP has a proven track record of safety and ethical character building coaching for thousands of youth athletes that have fun enjoying the shotgun sports.”
He currently serves on the Board of Directors of the Scholastic Shooting Sports Foundation (SSSF) and is a past coach of an SCTP team in Shawnee, KS.
The SCTP in turn is partnering with the Kids and Clays Foundation to hold a two-day sporting clay charity event at the Cardinal Shooting Center in Marengo, OH.
The youth event is scheduled to be held Friday, July 20, and Saturday, July 21, during SSSF’s Scholastic Clay Target Program National Championships. The event is open to the public.
The Scholastic Shooting Sports Foundation is the nation’s leader in youth development shooting sports programs. The Kids and Clays Foundation supports a series of shooting events across the country with all proceeds benefitting Ronald McDonald House Charities. All proceeds from this special two-day event will help each organization fulfill their mission.
Military Thanks Promotion
Smith & Wesson Corp. announced on June 1 that Smith & Wesson and Thompson/Center Arms have established a new military appreciation program, named “Thank You For Your Service.”
This new program offers eligible US Armed Forces personnel a discount on qualifying Thompson/Center and Smith & Wesson firearms purchased from June 1, 2018 to December 31, 2018. This program applies to all active duty, honorably discharged, retired, or disabled members of the US Armed Forces or Reserves.
Purchases of a new selected Smith & Wesson or Thompson/Center firearm from certain categories between June 1, 2018, and December 31, 2018, will be eligible to receive prepaid MasterCards varying from $25 to $100 in value depending on the product purchased. Some examples include: a $100 Smith & Wesson prepaid MasterCard* on any new, qualifying M&P® rifle purchased, a $75 Smith & Wesson prepaid MasterCard* on any new, qualifying T/C® Venture™ or complete T/C Encore® Pro Hunter™ pistol, rifle, shotgun or muzzleloader (FX/XT), a $50 Smith & Wesson prepaid MasterCard* on any new, qualifying M&P pistol, T/C Compass®, T/C Triumph® or T/C Triumph® Bone Collector®, and $25 prepaid MasterCard* on any new, qualifying Smith & Wesson revolver, T/C T/CR22™ rifle, or T/C Impact!™ muzzleloader.
To participate in the “Thank You For Your Service” electronic rebate program, customers must complete and submit the online rebate form at www.smithandwessonrebates.com. All submissions must include proof of purchase and be submitted on or before January 31, 2019. Complete terms and conditions of the rebate program are available on the cited website, or by contacting customer service at 844-628-7926.
