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

Mossberg Maverick 88
Mossberg Maverick 88

Mossberg Maverick 88: Mossberg's Budget-Priced Pump Shotgun

The Maverick 88 is one of Mossberg's best known shotgun models and is currently available in 14 different versions.

The Men And Guns Of D-Day: 82nd Airborne Division

Watch this segment of American Rifleman Television "The Men And Guns Of D-Day" to learn more about the men of the 82nd Airborne Division, their stories and the firearms they used during "The Great Crusade."

MidwayUSA Grants $2.3 Million To Help Youth Shooting Teams

The MidwayUSA Foundation recently announced the payout of more than $2.23 million in cash grants to 612 youth shooting teams.

Review: Bond Arms Roughneck

The Roughneck derringer from Bond Arms is an entry-level option in 9 mm Luger, but don’t let that fool you, as the quality of its materials and craftsmanship rival those of the company’s top-end variants.

Book Review: The US M3/M3A1 Submachine Gun

Michael Heidler, no stranger to writing about firearm history, has produced a most impressive volume on one of this author’s favorite World War II firearms, the M3 “grease gun.”

Sniping In Korea: 1950-1953

When U.S. forces rushed to stop the North Koreans from overrunning South Korea in 1950, there were almost no American snipers. As the battle lines stabilized, that would change, and the war would become ideal for the employment of well-equipped and well-trained snipers.

Interests



Get the best of American Rifleman delivered to your inbox.