Heckler & Koch announced on the 17th that the primary shareholder, Andreas Heeschen, has provided H&K’s GmbH’s parent company, H&K AG with 60 million Euros. The new shareholder loan is to assist with H&K GmbH’s cashflow and repayment of various outstanding loans.

In the firearms industry, this is a rare move and shows Mr. Heeschen’s confidence in the Heckler & Koch company. Demand for firearms in Europe is increasing due to various social and economic factors including the Syrian refugee crisis and escalating tensions between powers including Russia.

Its also convenient timing, as the H&K G36 has been vindicated of its supposed accuracy issues. We at TFB were one of the few outlets defending the rifle against accusations that the zero would wander under adverse conditions. Even with the G36 resolved, the company still has issues facing it including the recent arrest of ex-employees illegally exporting firearms to Mexico.

The move, including a recent draw of 15 million Euros on a secured credit line is assisting with covering an outstanding 9.5% Senior Secured Note due in 2018. However, the company still will have over 200 million Euros of outstanding debt, which recently resulted in a reduction of the company’s credit rating by Moody’s and Standard & Poor.

See the Press Release at H&K.