Colt Defense Emerges From Bankruptcy
This week, Colt Defense—the parent company of consumer-facing Colt Manufacturing—announced in a press release that it has emerged from the...
This week, Colt Defense—the parent company of consumer-facing Colt Manufacturing—announced in a press release that it has emerged from the chapter 11 bankruptcy process. As the Wall Street Journal reports, in Nov. 2014, Colt announced that it lacked the necessary funds to pay bondholders and guessed that it would default by the end of the year. In June 2015, however, the company filed for chapter 11 protection and secured $20 million from lenders to continue operations as it sorted out the situation.
According to the release, to recover from its financial woes, Colt has restructured, reduced its debt by about $200 million, and raised additional capital. In a statement, Colt Defense CEO Dennis Veilleux said:
We were able to restructure our balance sheet while meeting all obligations to our customers, vendors, and suppliers throughout this process. This is a true testament to the hard work and support of our dedicated employees, as well as an affirmation of a shared confidence among our key stakeholders and creditors that Colt is on the right path. We are grateful for their commitment to Colt and we look forward to the future as we build on our heritage as an iconic American brand with renewed vigor and purpose.
Much of Colt’s recent troubles began in 2013 after it lost military contracts for the M4 rifle, the Daily Beast notes.