Colt Avoids Loan Default

by
posted on December 8, 2014
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

man shooting bergara rifle outdoors
man shooting bergara rifle outdoors

Trend-Setting Precision: Manufacturer-Run Long-Range Clinics

A quiet trend has begun in firearm industry and, judging by the response, the approach could quickly spread. While more and more gun companies are holding highly successful free events that provide fans a chance to take their latest models for a short “test drive” at a range, a pair of precision-rifle companies have launched something very different.

Review: CMMG Banshee Mk10 Pistol

CMMG offers its radial delayed blowback action Banshee line of large-format pistols based off the AR-15 in a 10 mm Auto chambering as well, with the Banshee Mk10.

NRA Gun Of The Week: Franchi Affinity Turkey Elite

Watch American Rifleman staff on the range this week with the Franchi USA Affinity Turkey Elite in 20 gauge, a package designed for the pursuit of wild turkey.

The Armed Citizen® Sept. 23, 2022

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

Preview: Skeeter Hawk Mosquito Repellents

Skeeter Hawk’s mosquito-repelling products make use of all-natural essential oils instead of harsh chemicals to help keep the flying insects away.

Springfield Launches New Online Shopping Experience

The revamped and enhanced experience is designed to ensure customers find exactly what they want quickly—and for a great price.

Interests



Get the best of American Rifleman delivered to your inbox.