Gun maker Colt files for Chapter 11 bankruptcy protection
Fortune on MSN.com · 4 hours ago
Colt Defense LLC, maker of 'The Gun That Won The West,' said late Sunday it's filing for bankruptcy, two years after losing a key Army contract for the M4.
The filing follows increasingly desperate attempts to restructure its debt over the last two years, the last of which was rejected by a large majority of bondholders. It has secured $20 million in financing from senior lenders in order to ensure it can keep operating in bankruptcy. A court-supervised auction of some of the company’s assets is now expected.
© Richard Lardner/AP M4 Colt rifle are produced at the Colt Defense Plant in Hartford, Conn., Thursday, March 27, 2008. No weapon is more important to tens of thousands of U.S. troops in Iraq and…
Fortune on MSN.com · 4 hours ago
Colt Defense LLC, maker of 'The Gun That Won The West,' said late Sunday it's filing for bankruptcy, two years after losing a key Army contract for the M4.
The filing follows increasingly desperate attempts to restructure its debt over the last two years, the last of which was rejected by a large majority of bondholders. It has secured $20 million in financing from senior lenders in order to ensure it can keep operating in bankruptcy. A court-supervised auction of some of the company’s assets is now expected.
© Richard Lardner/AP M4 Colt rifle are produced at the Colt Defense Plant in Hartford, Conn., Thursday, March 27, 2008. No weapon is more important to tens of thousands of U.S. troops in Iraq and…
Colt, now based in West
Hartford, Conn., rose to prominence in the mid-19th century under its
eponymous founder, Samuel. The company’s most famous product, the
single-action “Peacemaker” pistol (also known as the Colt .45), was
standard issue to the U.S. Cavalry after the Civil War, and its legend
was burnished by association with real-life figures such as Gen. George
S. Patton, and by fictional ones in numerous Western movies such as John
Wayne’s “True Grit”.
However, the company’s recent past has been checkered. It has already had one spell in Chapter 11, emerging from it in 1994. The Wall Street Journal reported that alternative investment firm Sciens Management had most recently been listed as 87% owner of the company, with some of its principals indirectly owning stakes in the West Hartford manufacturing facilities.
However, the company’s recent past has been checkered. It has already had one spell in Chapter 11, emerging from it in 1994. The Wall Street Journal reported that alternative investment firm Sciens Management had most recently been listed as 87% owner of the company, with some of its principals indirectly owning stakes in the West Hartford manufacturing facilities.
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