Tags: colt | firearms | bankruptcy | assets | sale

Colt Firearms Bankruptcy May Clear Way for Sale of Its Assets

Image: Colt Firearms Bankruptcy May Clear Way for Sale of Its Assets
Photo od Colt web site. (colt.com)

By    |   Tuesday, 16 Jun 2015 07:14 AM

Colt Defense, maker of the fabled Colt .45 firearm, has filed for bankruptcy in U.S. District Court in Delaware and the current owners hope to be allowed to sell the company's U.S. and Canadian assets.

Colt, located in West Hartford, Connecticut, is looking to shed some of its debt through bankruptcy before its reported sale to Sciens Capital Management, which wants to buy nearly all of the company's assets, reported USA Today.

 


The Wall Street Journal reported that Colt Defense suffered from slow rifle sales in 2013 and lost a major U.S. Army contract in which it produced the M4. The newspaper reported that the company he been plagued with supply chain and financial problems as well.

Colt was forced to revise financial results in prior years because of discovered "accounting problems," according to the Journal, forcing the company to miss a creditor's initial filing deadline for its annual report.

"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," Keith Maib, chief restructuring officer of Colt Defense LLC, said in a company statement.

Maib said Colt hopes the filing will allow the company to rebound domestically and internationally.

"Importantly, Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers," said Maib. "We look forward to successfully executing on this plan, which provides a sound path of stewardship for an iconic American brand and the key stakeholders we serve."

Colt said president and chief executive officer Dennis Veilleux, who had led the company's management team since 2013, will stay through the bankruptcy process.

Colt has supplied firearms to civilian, military and law enforcement in the United States and internationally for more than 175 years, the company said. Colt's prominence in the firearms industry dates back to its use by Texas Rangers in 1845 and the Civil War.

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Colt Defense, maker of the fabled Colt .45 firearm, has filed for bankruptcy in U.S. District Court in Delaware and the current owners hope to be allowed to sell the company's U.S. and Canadian assets.
colt, firearms, bankruptcy, assets, sale
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2015-14-16
Tuesday, 16 Jun 2015 07:14 AM
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