Colt Defense Files Chapter 11, Announces Fast Track Restructuring

By Ammoland

Files Voluntary Chapter 11 to Implement 363 Sale to Newly Created Entity Funded By Sponsor Colt Expected To Emerge with Stronger Balance Sheet within 60-90 Days. Company Has Obtained $20 Million in Incremental Financing to Fund Operations. Colt to Continue Business Operations with No Impact on Customers, Vendors, Suppliers and Employees.

WEST HARTFORD, Conn.- -(Ammoland.com)- Colt Defense LLC (“Colt” and the “Company”) announced today in voluntary Chapter 11 materials filed in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) a process that will allow for an accelerated sale of Colt’s business operations in the US and Canada.

Colt’s current sponsor, Sciens Capital Management LLC (“Sciens”), has agreed to act as a “stalking horse bidder” and has proposed to purchase substantially all of Colt’s assets and assume secured liabilities and all liabilities related to existing agreements with employees, customers, vendors, and trade creditors.

Colt intends for the sale to ensure a smooth and swift transition of the business with all of its iconic brands, products, and operations supported by a stronger balance sheet due to a significantly lower debt burden.

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Source:: AmmoLand