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

TandemKross Manitcore X
TandemKross Manitcore X

Review: TandemKross Manticore X

In 2024, TandemKross (TK), best known for its high-quality competition upgrades for rimfire platforms, launched the first ever lower-receiver assembly designed for the rimfire Ruger 10/22 platform.

Rifleman Q&A: Surreptitious L.C. Smith

American Rifleman staff recently received the following question about markings on a possible L.C. Smith shotgun. Read what we learned:

USA Clay Target League Breaks Participation Record—Again

The fall season is underway for the USA Clay Target League, and the number of student athletes participating speaks volumes about the growing popularity of shooting sports among high school- and college-age students.

Hunting For The Perfect Partner: Ruger/Dead Air’s Centerfire RXD

The result of a joint venture between two giants of their respective industries, the new RXD30Ti exemplifies just how beneficial a well-designed hunting suppressor can be in the field.

The Armed Citizen® Oct. 20, 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.

AI Summaries Reducing Firearm-Related Web Traffic, Sharing Incorrect Information

"[T]here are increasing concerns about how frequently AI systems invent false information—AKA hallucinations—with error rates in some tests reaching as high as 79 percent.”

Interests



Get the best of American Rifleman delivered to your inbox.