Bank of America is maintaining its commitment to provide financing for gun maker Remington Outdoor’s exit from bankruptcy, though the bank’s plan to end financing for companies that produce “military style firearms” for civilians remains in place.
The Charlotte, North Carolina-based firm is one of seven banks loaning money to Remington as it emerges from a Chapter 11 bankruptcy filing in March. Bank of America is providing $43.2 million of the $193 million loan package, according to court documents obtained by Reuters.
Terms of the new credit facility were in place in March, days before Bank of America Vice Chair Anne Finucane told Bloomberg TV in April that the bank would no longer “underwrite or finance military-style firearms on a go-forward basis.”
Bank of America’s agreement with Remington allows the bank to exit the deal provided it can find another institution to cover its loan commitment. But Bank of America is keeping its commitment because of concerns that its withdrawal from a court-supervised bankruptcy proceeding would leave the bank liable to lawsuits, as well as hurting its reputation for keeping its commitments, a source familiar with the situation told FOX Business.
Reuters was first to report Bank of America’s decision to keep its commitment to Remington. Other banks providing loans include Wells Fargo, Fifth Third Bank and Deutsche Bank.
Bank of America’s policy shift came shortly after a school shooting in Parkland, Florida, left 17 people dead. Several companies, including Citigroup and Dick’s Sporting Goods, opted to alter their gun policies in response to the shooting.