Colt: Open for Business After Bankruptcy Filing

by
posted on June 15, 2015
** 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
Colt remains open for business and anticipates no impact on customers as it enters voluntary Chapter 11 bankruptcy, which will allow for quicker sale of operations in the U.S. and Canada. The filing ends long-time speculation about whether the iconic firearm manufacturer would be able to successfully emerge from its financial woes.

It has been reported that in its filing, the company estimated it owes up to $500 million to up to 50 creditors, with assets listed up to $500 million. “The plan we are announcing and have filed today will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the company’s current and future business operations,” said Keith Maib, Chief Restructuring Officer of Colt Defense LLC, in a statement posted on the Colt website.

Maib said that entering Chapter 11 protection, while not their preference, is the best path going forward as the company focuses on improving its business performance and competitive market positioning. He said the team “will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers.”

Colt’s private-equity backer, Sciens Capital Management, will act as a “stalking horse bidder” and acquire Colt’s assets. Colt’s existing secured lenders have also agreed to provide $20 million in incremental financing to fund operations.

The entire process is expected to be complete within 60 to 90 days.

Previously on AmericanRifleman.org:

Colt Avoids Loan Default

Fear & Loading: What's the Story With Colt?

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.