Firearms maker Remington Outdoor Co., facing “difficult industry conditions” and a school-shooting lawsuit, plans to file for bankruptcy after reaching a debt-restructuring agreement with its lenders and bondholders, WSJ Pro Bankruptcy reported. The company, whose many gun brands include Bushmaster as well as its namesake Remington, plans to slash about $700 million in debt from its balance sheet through a debt-for-equity swap with its term loan lenders and holders of its 7.875 percent senior secured notes. The restructuring will be carried out through a chapter 11 filing in the U.S. Bankruptcy Court in Wilmington, Del., the company said yesterday. While under chapter 11 protection, Remington plans to continue its operations and continue paying its vendors and employees. Remington said yesterday that creditors have agreed to provide a $100 million loan to help fund operations while the company is in bankruptcy. The loan will be converted into an exit term loan when the company emerges from bankruptcy, pending court approval. Remington’s lenders and noteholders have also agreed to provide a $45 million term loan that will be rolled into the bankruptcy loan.
