Our firm occasionally has to deal with corporate bankruptcy issues and it is usually either the end of a corporation or the best thing for them.
In this case Remington is asking the current creditors to exchange debt for equity. This would remove 700 million dollars of debt from the balance sheet and also remove the interest expense on that debt from the income statement. The interest on 700 million dollars is a very large amount and it's removal should return the corporation to profitability. The current creditors would step into the position of ownership.
A bankruptcy of this type is for protection from creditors while the corporation is reorganizing under the watchful eye of the courts. The creditors will often have great incentive to see the corporation come out of this in good shape if they ever want to be paid. Although sometimes it is a hopeless situation and the best thing for the creditors is to see the corporation dissolve and pick the bones, that does not look like the case here.
Whatever the new equity group might do with the corporation is of course unclear but my bet is that they will want to sell their equity interests after the reorganization. I think that Remington will eventually come out of this as a stronger and more efficient organization.