Gunwerks enters receivership
 

Accusations claim Gunwerks has defaulted on $2.8mil in loans, is behind over $300k in back taxes over the last two fiscal years, and allegedly has transferred debt and potentially sold at-stake collateral to service other debts, and has entered into receivership, such Wells Fargo can recover against the debt. Interestingly, equipment and inventory are included, as well as intellectual property - which could have interesting implications for potential continued operations. It’s unclear whether Wells Fargo’s appointed firm will merely piece out the equipment or potentially continue operations to recover their debt.

Ultimately, it appears Gunwerks leveraged themselves far beyond their means during their recent expansion. Indications suggest this doesn’t really relate to the coronavirus pandemic.

K2 Radio Wells Fargo sues Cody firm Gunwerks

Sad to hear but I think your assessment of the situation is spot on.

Posted by the CEO on another popular forum....

https://www.gunwerks.com/blog/press-...25#scrollTop=0

-Jake

That sure takes a lot of guts on the part of Wells Fargo if this article is true, seeing as how they made up fictitious bank accounts to make it look like they were doing better than they really were and inflate their assets. Wells Fargo doesn't have a stellar reputation.

Wells Fargo seems to have gone full scum bag in this matter. I wonder how much they had to pay Gun Werks for their slander.

Wow!!! Yet another reason never to do business with WF.

WF has traditionally been remarkably pro-firearms, relative to many other mega-bank and financial institutions.

These reports are obviously in conflict, so it will be interesting to see whether the receivership is actually satisfied as GW suggests in their retort, or if WF will retain its position. The allegation GW was offloading leveraged equipment isn’t something to be ignored.

Time will tell which way this particular domino falls.

Sounds like WF got whacked with a legal stick and probably had to fork over some cash for their troubles.

Do you have any reference for this? It seems you’re implying a counterclaim was made based on alleged slander (really libel, in this case), but despite some speculation on forums, it doesn’t appear to be based on any fact.

The reference is posted above by Bocajnala.

What I read from the Gunwerks response post is denial of the allegations. Not exactly what I’d call being “whacked with a legal stick,” and there’s no mention of any countersuit for defamation or libel, such WF would have to “fork over some cash” for damages to GW. Folks have been making inferences of potential countersuit, but as I said above, it all simply appears to be unfounded speculation.

Negative. I never posted or implied anything of the sort. V plays a little fast and loose with his statements at times I think.

I'm not saying that WF didn't do any of that stuff. But I've seen nothing pointing to that yet. If I do I'll post it.

-Jake

Gunwerks paid WF nearly $3,000,000.

From the link I posted.
"Fortunately, we had the resources to pay off the credit line within two business days of Wells Fargo filing suit. "

And from the CEO posted on another forum

"At least the part where I paid Wells Fargo nearly 3m bucks today is true!

It's easy to verify that we are not delinquent on sales tax.

Do we have any vendors claiming delinquent payments?

Read my statement again."

I'm not saying there's not going to be a countersuit. But I haven't seen anything on that yet.

-Jake

I said "It sounds like," which is not in any way a statement of fact. Implied or otherwise.

Based on the CEO's statement "it sounds like" WF got slapped down hard...the statement said WF settled the suit out of court, which almost invariably involves laying out some $$$$ to make the legal action go away.

So to me, it sounds like WF got slapped pretty hard. Again: Conjecture based on how things normally work. Seems reasonable to me.

If i was implying a fact i would have said something like, "In point of fact..."

Sorry for the misunderstanding.

BTW, the title of this thread is now demonstrably false isn't it?

Our firm is occasionally involved in this type of issue. It sounds like the debtor had their feet held to the fire and had to scratch up enough cash to quickly satisfy an unhappy bank. In this type of event the bank usually demands repayment for some debtor default issue and files suit soon after to protect their position and to turn up the heat on the debtor. These problems are almost always settled to the bank's satisfaction in a reasonable period of time and rarely go to court. The only folks that truly know the situation are the involved parties.

I am not really a gambling man but my bet is that if this gets nasty that the debtor will come out on the short end. Probably neither side will want this to go any further and it will soon be forgotten.

Just in case anyone is unsure, Big Uncle is offering his opinion and not purporting to pass off fact. Same for me. :)

Yes but he was right when he said "The only folks that truly know the situation are the involved parties." At this point all any of us know is Gunwerks paid Wells Fargo a bunch of money that Gunwerks apparently agreed was owed. Late paying taxes can be a lot of things. Maybe there was a payment plan in place, payments were on a different schedule, etc. None of us knows for sure.

Agreed, and the SOP NDA will ensure it remains that way.

And by the way, thanks NoMercy. Now I went and watched a Gunwerks sheep hunting show on the OutDoor channel. The shots were under 500 yards so they didn't stretch it out to any 1,000 yard shots yet. But I have another episode to watch. Dude, I swear you're going to make me spend more money. :D