Posted on 06/13/2015 10:37:21 AM PDT by Jan_Sobieski
Colt, the iconic American gunmaker, could be bankrupt within days. The company, that has been making guns for 160 years, has been struggling financially and missed a $10.9 million interest payment on its debt in mid-May.
Colt admitted, in a regulatory filing, that its failure to make that interest payment raises "substantial doubt about the company's ability to continue as a going concern." Colt also said it "may seek relief under the bankruptcy code." The company has a 30-day grace period until June 14 to make the interest payment after which it has to find a way to restructure the debt with its bondholders.
Kevin Starke, gun industry analyst for CRT, said that Colt had already signed a debt restructuring agreement with its bank, but a group of bondholders rejected it that would have dropped the bonds to 45% of their face value. Starke said that bondholders are reluctant to agree to any pact that forces them to take a loss. That's because they might have a better chance of recovering all or most of their money in bankruptcy, assuming that Colt gets sold for enough money to cover the $250 million worth of bonds and another $102 million in additional debt.
That could be possible if a buyer emerges from among its larger gunmaking rivals such as Smith & Wesson (SWHC) or Sturm Ruger (RGR). Colt's status in the gun industry and its role in American history cannot be overstated. The West Hartford manufacturer established by Sam Colt has been the most famous gunmaker in America since the 1840s, when the Texas Rangers adopted its revolver during their Wild West wars with Native Americans...
(Excerpt) Read more at money.cnn.com ...
My wife decided that my King Cobra was hers. I loaded fairly light 38’s in it, and with a 6” barrel it’s comfortable for her to shoot all day. She “traded” me her Charter Arms snobby .38 for my side of the bed.....
....God, I love a woman who can outshoot me :-)
Bingo! The Democrat Governor just passed a budget clobbering corporations as well,General Electric is being courted to move out of Connecticut as well as a number of the insurance companies here.
The Governor is on his way to Europe for the Air show,trying to beg and bribe some suckers to try and do business here in this state
We’ve put well over a thousand rounds through ours. A couple minor FTF issues in the first 300 or so. Once they’re broken in we’ve had nary a hiccup.
The tolerances are very tight so a break in is recommended. We followed the instructions to the letter and they run just fine now. We’ve used everything from some 78 grain specialty ammo, 185 gr JHP, 200 gr JHP, and 230 gr JHP by various manufacturers. They eat it all.
Now we’re working on the most accurate factory loads for social work.
Yea, they’re pricey. But we are worth it. And when a husband and wife team pull out a set of Kimbers at the range, well, let’s just say we make friends every time we go. LOL.
Best,
L
If I were a creditor, I would insist that Colt move to Alabama or somewhere out of anti capitalist Connecticut.
Method to madness?
I can easily see liberal corporate types looting the company with the intent of getting a manufacturer out of the firearms business. Part of the long march through institutions.
God made man, but Samuel Colt made them equal.
They chose to stay in Connecticut when they could have moved to a state which has lower labor costs and which is more friendly to the manufacture of firearms. They chose to stay in Connecticut so they need to get the gravestone ready.
Very funny!
Sad if true.
Everyone else’s sales have been through the roof in the last 7 years, you have to ask why Colt’s weren’t.
There is a reason for it, it has nothing to do with their product design. It is their liberal management and cozy relationship with Northeast Government.
Colt should go back to making it’s most iconic firearms.
If I had 350 million I would buy it and move to a better state. Connecticut is raising taxes so much that even the insurance companies are looking at moving out of state.
Fire all the senior management and all the marketing folks, alllllll of them
They suck
10.9 million payment on INTEREST??? Who the hell is running Colt? Baraq Goldstein Obola?
If they sold the reproduction rights to the original M1911 that would be worth a hell of a lot.
That there is the first problem. Second problem is the DOJ, and ATF. Third problem is the "safe" guns research. And the last problem is image, and marketing.
Have Colt give me a call, and I'll work them through a Ch. 11.
5.56mm
“The West Hartford manufacturer established by Sam Colt has been the most famous gunmaker in America since the 1840s”
Part of any “restructuring” should be a requirement that Colt be made to move out of CT. But I guess if they merged with one of the other competitors, that would happen as a consequence of the deal. CT doesn’t deserve to have any firearm manufacturing within it’s borders.
Unlike a lot of other gun manufacturers Colt has/had lucrative government contracts for how many years? Sometimes that creates a culture of waste.
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