Colt Avoids Loan Default

by
posted on December 8, 2014
** When you buy products through the links on our site, we may earn a commission that supports NRA's mission to protect, preserve and defend the Second Amendment. **
colt-logo.jpg

In mid-November, Colt Defense LLC owed $10.9 million to its bondholders and notified the Securities and Exchange Commission that it might not be able to make the payment. Although there was a 30-day grace period, the future of the venerable West Hartford, Conn., gunmaker, founded in 1836 by Samuel Colt, was uncertain if it were to default. Even if Colt could raise the cash, the company was facing another similar payment the next month. Thanks to a $70 million loan from a Morgan Stanley affiliate announced on Nov. 18, the company was able to pay off what was immediately owed bondholders, as well as buy back more than $48 million in debt, giving Colt financial breathing room.

Sales for the gunmaker have slowed-as they have for most makers after last year's record highs. Delays in military contracts also reportedly contributed to Colt's financial shortcomings. Good news, however, was offered through a record "Black Friday" on Nov. 28. The FBI's National Instant Criminal Background Check System reportedly conducted more than 175,000 checks, the second highest daily total since the system was established.

Latest

Gotw Rra Lar 22 Tactical Carbine Web
Gotw Rra Lar 22 Tactical Carbine Web

Gun Of The Week: Rock River Arms LAR-22 Tactical Carbine

This week, we're on the range with the Rock River Arms LAR-22 Tactical Carbine, a rimfire variant of the AR-15 that's designed for reliability and gives enthusiasts a way to shoot affordably.

The Armed Citizen® July 11, 2025

Read today's "The Armed Citizen" entry for real stories of law-abiding citizens, past and present, who used their firearms to save lives.

Japanese Last-Ditch Small Arms Of World War II

The crude assortment of fighting tools used by the Japanese during World War II give clues of an unprepared and unmatched last-ditch fight that ultimately lead to Allied victory.

Federal Ammunition Awards 2025 Tom Knapp Memorial Scholarships

Federal Ammunition recently awarded the 2025 Tom Knapp Memorial Scholarships to two 4-H shooting sports teen ambassadors.

2025 Optic Of The Year: Burris Eliminator 6

Even as new generation after new generation of Burris Eliminator continued to add more advanced technology and functionality, it remained odd-looking—until the launch of this year’s sixth-generation product, which is the first in the line that can mount atop a rifle using standard 34 mm scope rings.

I Have This Old Gun: Star Model B

Of the many Spanish-made firearms to emerge throughout the 19th and 20th century, one of the most recognizable is the Star Model B, largely due to its similarity to the Colt Model 1911.

Interests



Get the best of American Rifleman delivered to your inbox.