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

RETAILBI Q1 2025 QUARTERLY REPORT 4 18 25 11
RETAILBI Q1 2025 QUARTERLY REPORT 4 18 25 11

Report Shows Inventory, Prices Have Dropped At Firearm Retailers

Nearly all gun and related gear inventories at retailers dropped in the last 12 months. So have most prices paid at the counter, according to the year-over-year comparison detailed in the latest RetailBI report.

Preview: Fix It Sticks Model 700 Quick Action Brush

For owners of Remington 700-pattern rifles, Fix It Sticks now offers one such specialty tool designed to clean those hard-to-reach recesses of the Remington receiver.

The Return Of The Taurus 58

Taurus has re-introduced its Model 58 semi-automatic handgun in 2025, bringing in a larger, easier-to-shoot defensive handgun chambered for the .380 ACP cartridge.

Preview: Timney Lever Action Trigger

Timney has now brought its trigger-tuning prowess to the resurgent lever gun platform.

Gun Of The Week: Taurus USA GX2

We’re taking a closer look at the budget-priced Taurus GX2, which offers some premium features while giving new or price-conscious gun owners an easy-to-shoot, entry-level, defensive handgun.

The Armed Citizen® May 16, 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.

Interests



Get the best of American Rifleman delivered to your inbox.