The future of the oldest gunmaker in the US has been secured after it completed a debt-cutting deal with creditors.
Remington Outdoor chief executive Anthony Acitelli said it was “morning in Remington country”, signifying the new lease of life for the firm after it filed for bankruptcy protection in March.
The company, which can trace its roots back to 1816, confirmed $775m (£574m) of its debt pile was being converted to equity under the package, that would see its private equity owner Cerberus relinquish control and a new board appointed.
It essentially means that lenders will now have a significant stake in the business – based on the amounts they were originally owed.
In addition, almost $200m of new funding has been secured from seven banks.
Concerns for Remington’s financial future reached fever pitch after a mass shooting in Parkland, Florida, left 17 people dead, triggering an upsurge in opposition to US gun laws.
Video: ‘Enough is Enough’ Guns must go
Cerberus had unsuccessfully tried to sell up after a Remington Bushmaster rifle was used to kill 26 people, including 20 children, in the Sandy Hook school massacre of 2012.
Sales fell by a third last year following the election of Donald Trump as US president – the reasoning being that there was no perceived risk of a clampdown on sales while a Republican was in the White House.
After responding to the Parkland shooting with promises of tougher gun laws, Mr Trump has since rowed back on plans to raise age limits by pledging more in-depth background checks.
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Remington’s lifeline comes as Colorado’s Boulder City Council voted on Tuesday to ban “assault weapons” and bump stock devices.
A pro-gun Second Amendment group has threatened to sue individual council members over the move.