May 22nd, 2020

Gunwerks States It Has Settled Lawsuit with Lender Wells Fargo

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Today, May 22, 2020, Gunwerks LLC published a statement on its website, declaring that it has settled the lawsuit brought by lender Wells Fargo Bank. This Official Statement from Gunwerks CEO Aaron Davidson explains that the Wells Fargo credit line has been paid. In addition, Davidson said that Gunwerks is NOT delinquent on Wyoming State Sales Taxes and that there are no late payments to the company’s vendors. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.

OFFICIAL STATEMENT FROM GUNWERKS CEO
REGARDING WELLS FARGO LITIGATION

Cody, WY – May 22, 2020

The reports of Gunwerks’ demise are completely false. In fact, we’re crushing it! So far, 2020 has set records for sales performance and profitability, and it only gets better from here!

This week’s report of Wells Fargo filing a lawsuit has gotten a lot of attention. The bottom line is, the litigation has been settled, the entirety of our Wells Fargo operating loan has been paid off, and it is business as usual for Gunwerks.

The Wells Fargo narrative of Gunwerks’ financial distress was untrue. The dispute was never about Gunwerks’ financial condition or late payments, but about a difference of opinion on asset valuation. Within days of filing the suit, it has been settled and the case will be dismissed immediately.

Most of the stories circulating around the social media landscape are just wrong! Here are two good examples: In Wells Fargo’s narrative complaint filed in federal district court, they assert that Gunwerks was delinquent on sales tax payments. This is not true now and has never been true (Check here for a list of current delinquents in WY). They also allege that Gunwerks is late paying vendors. Again, this is untrue. We pride ourselves in dealing fairly with our vendors.

Unfortunately, despite our numerous good faith attempts to resolve the issues with Wells Fargo, the bank chose to file a lawsuit, which has now been settled. Fortunately, we had the resources to pay off the credit line within two business days of Wells Fargo filing suit. Our customers have really supported us this year with record sales. We’re on track to have our best performing year on record.

Gunwerks CEO Aaron Davidson Comments on Litigation

About the Future — New Products
In 2020 Gunwerks will be announcing several new and innovative products that have been in development the past several years. Keep an eye out for an entirely new, next-gen rifle system engineered from the ground up, at least three more Skunkwerks projects, and new optics products and ballistic solutions in the Revic lineup.

The damage to Gunwerks’ reputation from Wells Fargo’s lawsuit will take quite a while to overcome, but with our team and a foundation of innovation and product quality, we see this as a minor incident. We’ve never been more excited about our business!

Sincerely,

Aaron Davidson, CEO Gunwerks

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May 21st, 2020

Gunwerks Sued by Wells Fargo to Collect on $2.8 Million Loan

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Wyoming-based Gunwerks LLC is a highly visible producer of high-grade rifles, modern optics, and rifle accessories. Gunwerks had its own television show and operated upscale long-range shooting clinics and guided hunts. Now the company may be in tough financial straights.

K2radio.com reports that: “Wells Fargo Bank has sued the Cody-based custom-rifle maker Gunwerks, LLC, for $2.8 million for unpaid loans and wants the company’s equipment, according to federal court records filed Wednesday. Gunwerks … also owes $1 million to creditors and and for unpaid sales taxes, according to the complaint by the bank and Wells Fargo Equipment Finance, Inc., through its attorneys[.]”

For full details, we recommend you read the full 5/20/2020 news story from Wyoming Radio Station KTWO (K2) in Casper, Wyoming. That report provides extensive details of the legal claims by Wells Fargo. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.

Wells Fargo’s complaint alleges that Gunwerks owes the bank roughly $2.8 Million. Wells Fargo further alleges that a Gunwerks financial report reveals that Gunwerks owes approximately $622,000 in creditors’ bills. The complaint also alleges Gunwerks owes $365,000 in unpaid state sales taxes.

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Wells Fargo’s Motion for a Receiver states the loan amount owed is $2,783,757.82, with interest accumulating at more than $20,000 a month.

Wells Fargo is seeking to recover and secure inventory and other Gunwerks property used as collateral for the bank’s loans. The complaint filed in Federal Court alleges: “These circumstances require the immediate appointment of a receiver to recover, salvage, and retain the value of the Collateral.”

Wells Fargo has alleged that Gunwerks has already sold part of the collateral inventory and deposited the proceeds in different banks: “The Borrower has taken control of Wells Fargo’s collateral, refuses to disclose the names and addresses of account obligors for accounts that constitute collateral for Wells Fargo and has removed and refused to remit proceeds of Wells Fargo’s collateral to prevent such collateral from being applied to the Borrower’s loans[.]”

Gunwerks has not made a public statement about the situation: “What all this means for the company’s future and its employees is unknown. A Gunwerks’ spokesman did not return calls seeking comment.” (Source KTWO Report.)

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