© Reuters. WEAPONS: REMINGTON MANAGES TO REACH AN AGREEMENT FOR A BANKRUPTCY
(Reuters) – Remington Outdoor Company, one of the most important arms manufacturers in the United States, announced on Monday that it had reached an agreement with its creditors allowing it to benefit from the protection of the law on bankruptcy (“Chapter 11”) and reduce its debt, currently at $ 950 million.
This project is made bankrupt following a drop in sales of the manufacturer of the weapons, the fact that the Americans no longer fear a hardening drastic regulations on arms sales, report the rating agencies.
The us president, Donald Trump has made it known “that he would never, ever, infringement of the right of individuals to own and bear arms.” Since his election in November 2016, American Outdoor Brands has lost nearly two-thirds of its market capitalization, while Sturm Ruger & Company has seen hers fall by 25%, while the S&P 500 has risen in the same proportion during this period.
Remington has stated that it would receive $ 145 million (€118 million) to fund the company while it is subject to the procedure of “Chapter 11” .
Remington wants to put themselves under the protection of the justice of the State of Delaware and clear $ 700 million of debt.
Cerberus Capital Management, the private equity company that controls Remington, will lose its participation in the framework of the proceeding and the creditors, including Franklin Templeton Investments and JPMorgan (NYSE:JPM) Asset Management, will exchange their debt for securities of the group.
(Jessica DiNapoli and Andrew Berlin, Juliette Rouillon for the French service)