Majority stakeholder Sciens Capital Management didn’t produce $15 million by the Dec. 28, court-approved deadline for the famed gunmaker’s exit from bankruptcy protection. That might lead you to believe the fatal wound has been delivered, but Colt’s found alternative—albeit creative—funding.
Recent actions make it obvious Colt doesn’t wave the white flag, even when faced with legal and financial challenges that would bury its competition. The company even rolled out new guns, despite the adversity, which speaks volumes about the management’s ability to maintain “mission focus” and live up to the firm’s legacy of overcoming similar obstacles.
Sciens has until today to produce a portion of the funds or it will jeopardize the firm’s role in Colt. If the money doesn’t materialize, lenders have agreed to extend terms with the gun company and the owners of the building Colt occupies have also made concessions. That, of course, means the if this hurdle is cleared, Connecticut will be its home for some time.
A Sciens representative explained to Dow Jones Business News the reason for the delay is the manner in which the company works—each investment is funded separately and it takes time to secure that kind of backing. The company has until the close of business today to provide Colt its first $1 million installment.
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