Colt files for Bankruptcy

[OH UNCLE PAUL]

This is the same company who decided to make ARs that were stand alone.

Couldn't use the same pins, couldn't use the same hammer and trigger, couldn't use a MilSpec BCG.

Just for now I'll ignore that whole stupid front take down debacle.

Not going to miss them. Edited June 16, 2015 by OH UNCLE PAUL

[FreedomGunCo]

160 years of going bankrupt or on the brink of it.

[Mark@Sea]

Colt is owned and managed by financiers that could give two hoots about the industry. They are lining up to 'purchase' the company from themselves (for the second time, I think). In the process they will skin current bondholders and lenders, get a new bunch of suckers to finance it for them, pull the cash that will be generated into their pockets and continue running the company as they have been for the last 20 years. Colt is nothing but a cash cow for hedge fund managers.

[No_0ne]

Colt is owned and managed by financiers that could give two hoots about the industry. They are lining up to 'purchase' the company from themselves (for the second time, I think). In the process they will skin current bondholders and lenders, get a new bunch of suckers to finance it for them, pull the cash that will be generated into their pockets and continue running the company as they have been for the last 20 years. Colt is nothing but a cash cow for hedge fund managers.

 

Pretty much spot on from what I've read of their latest financial mess.  What's really amazing is that apparently there are still banks, funds and investors that are willing to lend them more money, despite the fact that their earlier shenanigans border on outright theft of capital from the previous loans. More proof of the validity of W.C. Fields old maxim ...

[gregintenn]

Wonder if POTUS will bail them out like the auto makers and banks?

I'd love to hear that question posed at a press conference. :up:

[runco]

UPDATE

 

http://www.thetruthaboutguns.com/2015/08/foghorn/colt-to-bankruptcy-court-guarantee-execs-bonuses-terminate-employees-salaries/

 

Colt to Bankruptcy Court: Guarantee Execs’ Bonuses, Terminate Employees’ Salaries

By Nick Leghorn on August 25, 2015

Colt is dying a slow and very public death. Once a major firearms manufacturer, the storied gunamker lost their government manufacturing contracts to FN and others, gradually ran out of cash and filed for Chapter 11 protection in June. Now the end is near, and the very same people responsible for the terrible decisions that drove Colt to bankruptcy are asking a judge to secure their multi-million dollar golden parachutes. At the same time they are trying to weasel out of a provision that would keep them paying their union employees until the end of their contract. From The Courant . . .

 

Colt Holding Company is asking a bankruptcy judge to approve golden parachutes that could be as high as a full year’s salary for nine top executives.

[…]

Colt’s request, totaling millions of dollars, comes as the company is trying to wipe out $350 million in debt that it owes to creditors, chiefly bondholders.

The company is also trying to break a provision in the union contract that guarantees the rank-and-file production workers — about 500 members of the United Auto Workers union — can keep their current compensation through the end of their contract in March 2019.

[…]

If all nine received the top of the bonus range, it would total $2.53 million.

Whatever happens to Colt in its current form, someone will probably take control of the brand and seek to reinvigorate it. Fans of the legendary Python shouldn’t hold their breath; the skills and tooling needed to make the revolver a reality once again are long gone. Current Colt employees, however, should hold theirs. The new owners will most likely hire back at least some of the workers. One would hope.

 

 

 

[runco]

Update:

 

http://www.colt.com/Media/PressReleases/tabid/252/articleType/ArticleView/articleId/138/Colt-Defense-Announces-Court-Confirmation-of-Plan-of-Reorganization--Iconic-American-Company-Set-to-Emerge-from-Chapter-11-by-Year-End.aspx

 

Colt Defense Announces Court Confirmation of Plan of Reorganization - Iconic American Company Set to Emerge from Chapter 11 by Year End

maxwellziegler posted on December 16, 2015 19:12

WEST HARTFORD, Conn., December 16, 2015 — Colt Defense LLC (“Colt” and the “Company”) today announced that the United States Bankruptcy Court for the District of Delaware (the “Court”) has confirmed the Company's Second Amended Joint Plan of Reorganization (“the Plan”).  The Plan received full support from all of the Company’s stakeholders.  Upon completion of the restructuring process, which is expected to occur in the coming weeks, the Plan will significantly restructure and reduce the Company’s debt, improve its capital structure and enhance its liquidity profile.  The Company will also have a new lease for its West Hartford Facility and the Plan reaffirms the Company’s strong relationship with the UAW.

The Plan finalizes a global settlement of all outstanding issues in the cases, achieved through a consensus reached among Colt’s key stakeholders, including a consortium of Colt’s secured lenders, Morgan Stanley as the lender under Colt's pre-petition and post-petition secured term loan facilities, the official committee of unsecured creditors appointed in Colt’s bankruptcy cases, Sciens Capital Management and the landlord at Colt’s West Hartford facility.

In conjunction with today’s confirmation, Colt also announced that it has reached an agreement with the United Auto Workers Union that resolves issues relating to retiree medical benefits.

“Today we achieved the last important milestone on Colt’s path to emerging from Chapter 11 as a stronger and more competitive company,” said Dennis Veilleux, President and Chief Executive Officer of Colt Defense LLC.  Mr. Veilleux added, “We greatly appreciate the dedication and support of our extraordinary employees during this process, as well as the support we received from our financial stakeholders, Sciens Capital and our customers and vendors.” 

[No_0ne]

Enabling is never a good thing, this just means that another group of investors and financial institutions are going to get sucked in again.  The saddest part is that these folks and their companies will continue to pour money down this sinkhole ...

[Ray Z]

Sorry, I still haven't forgiven them for the AR butt kissing they gave Clinton. It seems that it didn't work anyway.

[kcruisin]

I was talking to my favorite  gun dealer last week, and we got off on Colts.  He was talking about the recent quality and their attitude toward their dealers and suppliers. 

It wasn't a good report, to sum it up:  Pride goes before destruction, a haughty spirit before a fall.  Pro 16:18 

That's sad.
 

[Oh Shoot]

More probs, financier defaults on promised loan:

 

http://www.thefirearmblog.com/blog/2016/01/07/breaking-sciens-default-loan-colt-rocks-bankruptcy-exit/

 

- OS

[runco]

There seem to be a lot of positive marketing from Colt this week.  The release of their 2016 catalogue and of course the hype leading up to shot show.  Now I wonder if this will be a major derailment?