The maker of the Bushmaster AR-15-style rifle used in the CT shooting that left 20 first-graders and six educators dead in 2012 said Monday that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.
The settlement has been appealed to the 8 U.S. Circuit Court of Appeals, further stalling action by Remington to fix the trigger mechanisms.
"Remington's business operations will continue to operate in the normal course and will not be disrupted by the restructuring process", the company said in a news release. "We were told that there will be no layoffs or pay cuts and no plant closures", one worker said.
The local office now serves as a call center to assist customers as they diagnose or fix issues with their Remington firearms. Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results.
Remington executive chairman Jim Geisler said, "Difficult industry conditions make today's agreement prudent".
That bubble has since popped after the election of President Trump, with little likelihood of passing gun control through a Republican-controlled Congress and White House. The gun market was booming during the months leading up to election day, and gunmakers increased production in anticipation of increased sales.More news: Wyoming Gas and Oil Prices Down
'We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture.
With the consent of a majority of the holders of the term loans and the third lien notes, Remington Outdoor will provide a $45 million delayed draw first-out first lien term loan to the operating company. Another $100 million will be in place to keep the company running during the bankruptcy process.
Since then, Barber has spent years pushing the company to fix what he says are defects with the trigger mechanism that cause the popular Model 700 and other Remington rifles to fire without a trigger pull.
The company said the new capital will markedly strengthen the company's consolidated liquidity, balance sheet and long-term competitiveness.
Brands include Remington, Bushmaster, DPMS/Panther Arms, Marlin, H&R and Dakota Arms.
Current owner is Cerberus Capital Management, a private equity firm that owned Chrysler for a short time before the company went into bankruptcy proceedings and became part of the federal bailout of the industry.