Gun Maker Colt Files For Chapter 11 Bankruptcy

[liberal N proud]

NEW YORK (AP) — Gun maker Colt Defense LLC filed for chapter 11 bankruptcy late Sunday, allowing for a quicker sale of operations in the U.S. and Canada.

In its filing, the company estimated that it owes up to $500 million to up to 50 creditors. It also listed assets of up to $500 million.

The West Hartford, Connecticut-based company said it secured $20 million in financing from its current lenders and will continue to operate while in bankruptcy. The entire restructuring process is expected to be complete within 90 days, after which Colt plans to remain in business.

Colt selected Sciens Capital Management LLC as its "stalking horse," or lead bidder, in the sale.

In a statement, Colt said it will be able to reassure its employees of its commitment to continued operations in West Hartford through a long-term extension on the lease for its manufacturing facilities and campus. Union-related agreements will also be unaffected and employees will be paid all wages, salaries and benefits on a timely basis.

http://www.mbtmag.com/news/2015/06/gun-maker-colt-files-chapter-11-bankruptcy?et_cid=4625575&et_rid=652347563&type=headline


How does this happen in a day when gun nuts rule with Conceal Carry everywhere?

[Atman]

1. $500 million...meh, just walk away.

Student loan? You're on the hook for life.

God bless Amerigun.

[GreatGazoo]

2. they aren't "walking away" from debts

$500 mil owed and $500 mil in assets = net zero. Chapter 11 is re-organization -- NOT debts wiped away. The goal is to get creditors paid.

Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings.

https://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code