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IPFS News Link • Business/ Commerce

Gun manufacturer Remington to file for bankruptcy

• http://www.statesman.com, Theresa Seiger

Company officials said in a news release that a prepackaged reorganization plan will be filed with the U.S. Bankruptcy Court in Delaware. The deal will give control of the company to its lenders, Bloomberg News reported.

Remington seeks to lower its $950 million debt load, Reuters reported. The company's executive chairman, Jim Geisler, said in a statement that "difficult industry conditions make today's agreement prudent."

"I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage," he said.

Officials with Remington, the maker of the Bushmaster AR-15-style rifle used in the Connecticut shooting that left 20 first-graders and six educators dead in 2012, said the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.


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