Some creditors of American firearms manufacturer Freedom Group Inc are willing to offer the company more debt, despite the fact many of its private equity fund investors want out, a Reuters report said. Freedom Group is the maker of the Bushmaster rifle used in the Newtown, Connecticut school massacre. 

According to Reuters, Cerberus Capital Management LP had earlier turned to an undisclosed financial institution for a $200 million mezzanine loan to pay off some investors. The private equity firm vowed to sell Freedom Group a year ago in the wake of the shooting. 

But Freedom Group told its lenders later that it would instead try to raise $175 million from them in an effort led by Bank of America Merill Lynch. Commitments from financial institutions willing to participate are due Thursday evening, the report said. 

The new debt deal was proposed following discussions with lenders this week. It became apparent that there was appetite on Wall Street for more of the company's debt despite the controversy surrounding Freedom Group, Reuters said. The report added that the new debt will help buy out Cerberus fund investors who want to quit Freedom Group.