My reading (which is not helped by the fact that the reporter appears more or less financially illiterate from a corporate finance perspective) is that Cerberus

My reading (which is not helped by the fact that the reporter appears more or less financially illiterate from a corporate finance perspective) is that Cerberus essentially took $225m out of the company (saddled the company with expensive debt). This had the effect of de-risking their equity investment (as they essentially got their money out) but making the company very levered. The net effect was that now Cerberus had a call option on Remington, if things went well they'd make a ton of money, if things went south, it would be the debt holders issue, but they would't "lose" as they'd recouped their initial investment