Bondholders of the gun maker Remington Outdoor Company, formerly The Freedom Group, want a better deal if investors are going to cash out.
Remington Outdoor makes the Bushmaster AR-15 assault rifle that was used in last year's murder of 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn. Four days after the massacre, which took place on Dec. 14, 2012, private equity giant Cerberus said it would seek a buyer for Freedom Group, but in the last year attempts to secure a deal have failed.
Cerberus, which owns Remington Outdoor, is seeking to raise money to repay investors, as a number of them have said they want to cash out of Remington Outdoor.
With the one-year anniversary of the massacre approaching, people familiar with the situation tell CNBC institutional investors are getting anxious about getting out of the investment.
Debt holders have come back with their own proposal on how to raise the needed funds.