HUNTSVILLE, AL (WAFF) - Remington, one of the oldest and best-known gun makers in the world, has filed for Chapter 11 bankruptcy protection in order to restructure its massive debt. Remington has a plant in Huntsville, and WAFF 48 News learned what this means for the future of the many Tennessee Valley employees.
Mayor Tommy Battle is confident the future is brighter for employees today than it was just yesterday.
"I think their job is secure, because of the restructuring, because this restructuring took place, they're going to be able to put together a stronger company with less of a debt load on it, and I think that's important to that worker," Battle said.
He also comforted taxpayers.
"We have a $200 million building, which we have a $12 million mortgage on, which is our security. And our security is secured by that building, which is sitting there, and we are working with the bankruptcy judge and everybody else to make sure that mortgage stays in place as long as that mortgage is there, the citizens of Huntsville and the citizens of north Alabama are protected," he said.
WAFF reached out to the Alabama Department of Commerce. Secretary Greg Canfield wasn't available for a phone interview but provided this statement:
"For some time, we have been engaged in discussions with Remington about the company's financial situation amid significant changes in the industry. We remain in discussions with company leaders, and we will continue to have an ongoing dialogue with them regarding commitments to the Huntsville operation. We are closely monitoring all developments as Remington's leadership seeks to address the company's financial issues and regain a healthy footing. Looking forward, we're optimistic that the restructuring will provide favorable financial results so that the company's Alabama operation can realize its full potential."
According to our partners over at the Decatur Daily, Morgan County just completed their payment of a million dollars in incentives for the plant earlier this year. It was part of the agreement the Morgan County Commission approved four years ago to help bring it here.
Remington plans to continue making guns during the Chapter 11 process, which, according to CNN Money, is intended to reduce its debt by $700 million.
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