Colt: Open for Business After Bankruptcy Filing

by
posted on June 15, 2015
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

Man suit tie handgun pistol drawing concealment concealed carry leather holster semi-automatic black pistol
Man suit tie handgun pistol drawing concealment concealed carry leather holster semi-automatic black pistol

FBI Underreports Armed Citizen Actions, Study Says

A detailed study on lives saved by the actions of armed, law-abiding citizens, issued on Aug. 31 by the Crime Prevention Research Center (CPRC), found the number reported annually by the FBI reflects a mere fraction of the real figure.

Product Preview: Cold Steel Heavy Duty Sword Cane

A flat-black exterior finish on its heat-treated aluminum shaft and a black, molded-nylon handle give Cold Steel’s Heavy Duty Sword Cane a discreet appearance.

5 Must-Know Rifle Drills

While the basics are fairly fixed, firearm training is in constant evolution, with shooters developing new techniques to safely and skillfully build handling and shooting techniques to maximize the potential for both new and seasoned shooters.

New For 2023: CVA Crossfire

The CVA Crossfire is the latest muzzleloading design to utilize the Federal FireStick system, which makes loading safer, more consistent and easier.

NRA Foundation "Firing Into Fall" Auction Ends Monday

The NRA Foundation’s online “Firing into Fall” Auction ends Monday, giving potential bidders only the weekend to get their bids in.

Gun Of The Week: Beretta A300 Ultima Patrol

On this Gun Of The Week episode, the American Rifleman staff has an American-made, 12-ga. tactical shotgun from Beretta. Meet the A300 Ultima Patrol.

Interests



Get the best of American Rifleman delivered to your inbox.