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GUNMAKER REMINGTON FILES FOR CHAPTER 11 BANKRUPTCY

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Remington, the gunmaker beset by falling sales and lawsuits tied to the Sandy Hook Elementary School massacre, has reached a financing deal that would allow it to continue operating as it files for Chapter 11 bankruptcy protection. 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 today that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital. The company was cleared of any wrongdoing in the shooting, but investors repulsed by the massacres distanced themselves from the company’s owner, investment firm Cerberus Capital Management. Cerberus acquired the gun maker in 2007, just when gun sales began to skyrocket. While Remington is not a publicly traded company, shares in rival Sturm, Ruger & Co. slid almost 3 percent today. It’s shares have fallen almost 14% this year. Remington Outdoor Co., the nation’s oldest gun maker, will attempt to file a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware under Chapter 11 of the bankruptcy code.

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