Colt Defense, one of America’s best-known makers of guns, has filed for bankruptcy protection, the company announced Sunday night.
The company is hoping for an accelerated sale of its operations in the US and Canada. Sciens Capital Management, an investor which owns about 87% of the company, has agreed to act as a “stalking horse bidder” and purchase its assets and assume its liabilities. Colt hopes the entire process will take 60 to 90 days.
“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.
The company plans to continue its normal business operations and plans to follow through on all union-related agreements with its employees, who it expects will be paid all wages, salaries and benefits.
“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.
The gunmaker has been struggling financially for some time and, according to CNN Money, missed a $10.9m interest payment on its debt in mid-May. Over the past few months, the company has tried to get its creditors to agree on restructuring-plan, but had been able to gain support from just 5.9% of its bondholders.
Full Story @ [The Guardian]