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Colt is on the brink of bankruptcy
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K
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17 Jun ’15 - 9:10 am
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They priced themselves right out of the market IMO

Colt, the iconic American gunmaker, could be bankrupt within days.

The company, that has been making guns for 160 years, has been struggling financially and missed a $10.9 million interest payment on its debt in mid-May.

Colt admitted, in a regulatory filing, that its failure to make that interest payment raises "substantial doubt about the company's ability to continue as a going concern." Colt also said it "may seek relief under the bankruptcy code."

The company has a 30-day grace period until June 14 to make the interest payment after which it has to find a way to restructure the debt with its bondholders.

Kevin Starke, gun industry analyst for CRT, said that Colt had already signed a debt restructuring agreement with its bank, but a group of bondholders rejected it that would have dropped the bonds to 45% of their face value.

more http://money.cnn.com.....ankruptcy/

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K
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17 Jun ’15 - 9:48 am
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and it looks like they have

http://www.thedailyb.....krupt.html

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morotetsuke
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17 Jun ’15 - 11:27 am
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Price of their guns is not equal to the value.  Time for some real leadership.

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And the monkey presses the button.

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K
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18 Jun ’15 - 7:47 am
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be interesting to see if they restructure or are bought out

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jonathco
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18 Jun ’15 - 11:36 pm
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KVR said
be interesting to see if they restructure or are bought out

What?! No bail out? 🙂

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19 Jun ’15 - 4:48 am
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wouldn't that be something

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5 Jul ’15 - 11:01 am
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interesting turn of events

A business-savvy tribe of Native Americans, the Morongo Band of Mission Indians, is riding to the rescue of Colt Defense LLC, the embattled gun maker caught up in a contentious bankruptcy case.

Private-equity owner Sciens Capital Management has been clashing with bondholders over control of Colt. Sciens had the upper hand, but bondholders then moved into the lead, offering to finance a turnaround via the chapter 11 proceeding that began June 14. At this point, the fate of the Connecticut company, which has roots that run back to the 19th century, is unknown.

After the initial dustups in the bankruptcy brawl, the Morongo tribe had its lawyers on the phone to everyone concerned, offering to open talks with the maker of the “gun that won the West.”

“We are the West,” said Drew Ryce, attorney for the Morongo tribe, which is based in Southern California near Palm Springs. “All we know is that the company failed and we don’t want that to happen. It’s an iconic American company. It shouldn’t fail. It shouldn’t go away.”

Colt foundered financially after losing key military contracts. Bondholders blame Sciens for letting the military contracts slip away due to alleged failure to invest to keep Colt competitive. Sciens denies mishandling the company. Colt, Sciens and a lawyer for bondholders didn’t respond to a request for comment on the interest from the Morongo.

The Morongo aren’t taking sides, said Vickie Driver, a Texas bankruptcy lawyer advising the tribe on how to find a way in to the chapter 11 action. “We’re open, ready to talk. Colt needs something to right its ship,” she said.

One of the largest tribal business conglomerates, the Morongo run a $250 million resort and casino on tribal land, as well as a golf club and travel center. The tribe also owns the Hadley Fruit Orchard stores and online business, and it has an alliance with Nestle Water North Americas which sells water bottled at a $26 million plant on the reservation. “Manufacturing in the Northeast is a very good diversification play,” Mr. Ryce said.

more http://blogs.wsj.com.....ts-rescue/

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23 Dec ’15 - 9:32 am
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Looks like they are exiting bankruptcy through reorganization

Gunmaker Colt Defense received confirmation of its reorganization plan in bankruptcy court in Delaware Wednesday, paving the way for an exit from bankruptcy this month, the company said in a statement issued Wednesday evening.

Colt Holding Co. filed for bankruptcy protection in June, citing $269 million in unsecured debt to its 30 largest creditors. The largest creditor by far is a group of bondholders that loaned the company $250 million in 2009.

Some of those bondholders will be partial owners of the company once it's out of bankruptcy, as they are contributing $30 million of the $50 million of recapitalization Colt will have at that point, according to The Wall Street Journal.

Critical to the reorganization was the United Auto Workers' agreement to cut retiree medical benefits for 372 former Colt workers and spouses. The contract had the company paying nearly all the retirees' expenses that Medicare didn't cover; the company's exposure will now be limited to $1,500 per person.

more http://www.courant.c.....story.html

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